Wholesale operations will benefit
Woolworths has acquired Total Home Entertainment (THE) for£20 million from 3i in an effort to enhance its wholesale entertainment operations.

THE will be bolted onto the Entertainment UK (E.UK) division of Woolworths, expanding the group's book wholesaling business by giving it entry into primary distribution and bolstering its client list in the wholesale distribution of entertainment products.

THE's most high profile customer is Sainsbury's and this announcement coincides with an agreement between THE and Sainsbury's to renew their existing supply contract. THE also has a number of clients that will enhance E.UK's customer base in existing and new markets, including Music Zone, Somerfield and Fopp, as well as a large number of independent retailers.

E.UK managing director Lloyd Wigglesworth will assume responsibility for both companies. He said: 'E.UK and THE are both highly successful and profitable companies in the entertainment distribution market, with ambitious plans for expansion and growth.

'We both run world-class supply chain operations and have strong relationships with the major suppliers and customers throughout the industry. The two businesses are extremely complementary and, by bringing them together, we will be able to offer a wider range of services and greater added value to our customers and suppliers.'