twice connect
careers

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."
Want to read more stories like this?
Get our Free Newsletter Here!

Curated By Logo