The deal is expected to be completed by November 2012.
Dick Smith was founded in 1968 and became part of Woolworths in 1980.
The company employs over 4,500 people across stores in Australia and New Zealand.
Anchorage said the deal has been conservatively structured so that Dick Smith will emerge from the sale supported by a strong balance sheet with considerable asset backing and no core debt.
The firm also said it will support the business by providing additional cash investment and guarantees, while also maintaining the current network of 325 stores and to consider selective network expansion over time where appropriate.
“Anchorage is impressed with the underlying quality of the business and sees Dick Smith as an ideal fit for our investment mandate of acquiring established businesses with strong brands that can benefit from Anchorage’s proprietary approach to operational performance improvement,” said Anchorage chairman Phillip Cave.
“We’re extremely pleased to have entered into the agreement with Woolworths and are confident in the long term success of the business.”
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