Woolworths snaps up entertainment wholesaler

Woolworths is to begin supplying Sainsbury’s with entertainment products after a £20m (€29.6m) acquisition offset the loss of a wholesale contract with Tesco.

The retailer picked up the new work through a deal today for Total Home Entertainment (THE), which is an entertainment wholesaler owned by 3i.

The largest customer is Sainsbury’s, while THE also provides books, records and other products to Music Zone, Morrisons, music retailer Fopp and Somerfield.

Woolworths was dealt a blow earlier this year when it discovered that Tesco did not plan to renew its contract with subsidiary Entertainment UK (EUK) beyond next April. While the Tesco contract was worth more than today’s deal, the acquisition provides Woolies with a wider range of customers.

Woolworths chief executive Trevor Bish-Jones said: “This acquisition brings a number of high-quality customers to the group and speeds the expansion into areas such as books and primary distribution for entertainment publishers.

“This combination of the two companies will create a stronger operation better able to support its customers’ businesses.”

Mr Bish-Jones told investors in July that EUK was working to seek new customers to replace the Tesco business.

In the year to June 3, THE’s parent company AMP Enterprises made profits of £3.8m (€5.6m) on turnover of £302.5m (€446.9m).