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Household names strike agreement

Household names strike agreement

Dick Smith Electronics and David Jones have reached a retail brand management agreement for the operation of the David Jones Electronics business .

Firm: Clayton Utz and Truman Hoyle (Dick Smith Electronics)

Deal: A retail brand management agreement (RBMA) between Dick Smith Electronics and David Jones

Area: M&A

Value: Not disclosed

Key players: Clayton Utz corporate / M&A partner Jonathan Algar (pictured) and consultant Nick Brown advised Dick Smith Electronics, with Truman Hoyle also advising Dick Smith on employment law matters and assisting with the drafting of the RBMA. Partner Lesley Maclou worked closely with Dick Smith general counsel Robert Tran.

 David Jones was advised by its in-house legal team

Deal significance: The RBMA will see the existing David Jones Electronics business operated by Dick Smith Electronics under the banner ‘David Jones Electronics powered by Dick Smith’ from 1 October this year. Products covered by the RBMA include televisions, computers, tablets, home office, audiovisual and other digital products, but excludes whitegoods and small appliances, which will continue to be operated by David Jones. David Jones Electronics' frontline staff will also transfer over to Dick Smith from 1 October. The RBMA is exclusive to David Jones and is for an initial three-year term. Dick Smith Electronics will pay to David Jones on a monthly basis a fixed percentage of sales generated through the David Jones Electronics business.

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