SED Launches Lehrhoff Division

By TWICE Staff -- TWICE, 10/5/2011

Lawrenceville, Ga. - SED International Holdings has formally launched SED Lehrhoff, the IT/CE distributor's new small appliance unit.

Lehrhoff is a 93-year-old business that had been a division of bankrupt distributor ArchBrook Laguna. SED acquired it for $5 million in the company's August liquidation.

The purchase included Lehrhoff's inventory, intellectual property including customer and vendor records, and a lease option to a New Jersey distribution center.

 SED said the acquisition significantly expands its small appliance business and adds housewares and personal care products to its mix, while the distribution center that will reduce shipping costs and delivery times for current and potential customers in the Northeast and Mid-Atlantic.

The Lehrhoff business has historically generated annual revenues of more than $40 million and margins that are more than twice those of SED's, the company noted. The distributor said it has retained key Lehrhoff personnel to help restore the operation to historical run rates and bolster SED's long-term profitability.

"The launch of the SED Lehrhoff ... is in line with our strategic initiatives to improve our product mix and margins over time," said SED president/CEO Jonathan Elster.

Lehrhoff distributed small appliances, housewares and personal care products from more than 50 leading manufacturers to major national, regional and e-commerce accounts throughout the U.S. SED said it will continue many of those relationships and has signed new contracts with manufacturers including Bissell, Black & Decker, Brother, DeLonghi, Hamilton Beach, Hoover and Philips.