Sanity sale: £3 is turned into £5m in just two years

Music retailer Sanity's UK business has been sold for about£5 million.

The disposal marks a healthy profit on the£3 that Australian parent Brazin originally paid Virgin for the former Our Price business.

London-based entertainment wholesaler Primemist was Sanity's buyer, and the deal may lead to another fascia arriving on the UK's competitive high streets.

Both Sanity and BDO Stoy Hayward, which orchestrated the deal, remained tight-lipped about who is behind Primemist and what the plans are for the 118-store chain.

BDO Stoy Hayward corporate finance partner Peter Hemington said that private individuals had financed the deal, but he could not comment on who they are. He added that Primemist has links with the DVD distribution industry and is 'not a music retailer'.

Primemist has acquired the Sanity business and all its assets, so could run it as a multi-format entertainment retailer or choose to specialise in music or DVDs. Hemington added that eight parties had put in 'serious offers' for the chain. It is understood that fledgling DVD retailer Silverscreen was one of the interested parties.

Brazin chief executive Brett Blundy said: 'The sale will enable Sanity Entertainment (UK) to achieve its full potential under its new owner.'

Virgin sold 77 Our Price stores to Brazin for£2 in 2001 and an additional 41 shops for£1 in 2002.