Armour Acquires Alphason

Industry's leading companies come together

Armour Group PLC, the UK's leading consumer electronics group, focussed on the home entertainment and in-car communication and entertainment markets, have acquired the leading home entertainment furniture manufacturer Alphason Designs Ltd. This acquisition will allow Armour to further strengthen its position in the growing AV sector, driven by increasing demand for flat screen televisions and subsequently the related accessories.

Alphason has been designing, manufacturing and distributing specialist AV furniture for the last 10 years, making it one of the most recognised brands in the sector. With this strong brand comes excellent distribution channels across the whole of the UK consumer electronics market, from specialist retailers through to the multiples.

These are going to be exciting times for both companies and the consumer electronics industry in general. Glenn McClelland MD of Armour Home Electronics commented "The market for specialist AV furniture is expected to grow over the coming years with the surge in demand for LCD and plasma televisions. There are currently approximately 60 million cathode ray tube ("CRT") televisions and 2.5 million LCD and plasma televisions in the UK.

"We believe that over the next five to seven years a significant proportion of these CRT televisions will be changed for LCDs and plasmas with a consequential increase in demand for the associated accessories such as AV furniture. As the leading branded independent supplier of such products in the UK, we expect Alphason to benefit from this conversion to LCD and plasma televisions."

While John Reddington, MD of Alphason Designs reflected on the developments by saying "We are delighted to be joining Armour Home Electronics. The move not only enhances our position as the UK's number one AV home entertainment furniture supplier, but also gives us access to Armour's enormous resources in design and development, global sourcing and last, but not least, its excellent product range. With Armour as our parent our future looks even more exciting."

George Dexter, Chief Executive at Armour Group PLC said: "I am delighted with this acquisition. Alphason has been one of the few stars in the consumer electronics marketplace for the past few years, repeatedly increasing sales and profits month on month and year on year against a general background of doom and gloom. It is recognised as the UK's market leader in its sector, a sector that I am confident will continue to grow driven by the conversion from CRT to flat screen TVs. The acquisition is expected to considerably strengthen Armour's position in the UK consumer electronics market and give the enlarged Group the ability to reach a wider consumer audience with its product portfolio."

Alphason Designs Ltd will be run as a separate operating unit within Armour Home Electronics. This deal will mean Armour can add the powerful Alphason brand and its products to an already impressive portfolio and continue to develop its offerings in the AV furniture sector.