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SED Acquires ArchBrook Laguna Assets

8/16/2011 09:43:25 AM Eastern

Tucker, Ga. - SED
International Holdings reports it has acquired substantially all of the assets
of ArchBrook Laguna, in conjunction with Gordon Brothers Group, LLC, a global
advisory, restructuring and investment firm.

The price of the
transaction was not disclosed.

ArchBrook Laguna,
the privately held distributor of consumer electronics, computers and
appliances to retailers, based in Carlstadt, N.J., filed
for Chapter 11 protection in July
.

In 2005 Archbrook
partnered with BrandSource to form Expert Warehouse, but the buying group eventually
acquired Expert's inventory and announced a partnership with Ingram Micro last
month.

Assets purchased
by SED include those of ArchBrook Laguna subsidiary, Lehrhoff & Co., a
distributor of small appliances, housewares, personal care products and
consumer electronics.

The assets of ArchBrook
Laguna that SED has acquired include a portion of the company's finished
inventory, including goods in transit; customer and supplier lists; and certain
ArchBrook Laguna intellectual property.

SED plans to offer
employment to many of the Lehrhoff and ArchBrook Laguna employees. As part of
this transaction, SED will establish a location in the Northeast.

"The acquisition
of the ArchBrook Laguna assets is very much aligned with our three-year
strategic growth plan to broaden our product offering, diversify our geographic
footprint and enhance margins," said Jonathan Elster, president/CEO of SED.
"This transaction is a significant milestone toward our vision of becoming a
leader in the distribution of technology products and services."

 "SED's financial position is strong," he
continued, "with a $60 million credit facility with Wells Fargo that has the
ability to expand to $75 million. Additionally, we have a track record of
growth and have posted eight consecutive quarters of profitability. We are
excited at the prospect of integrating the ArchBrook Laguna and Lehrhoff teams
into the SED organization."

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