MarketThorn EMI
Company Profile

Thorn EMI

Thorn EMI was a major British company involved in consumer electronics, music, defence and retail. Created when Thorn Electrical Industries merged with EMI in October 1979, it was listed on the London Stock Exchange and was once a constituent of the FTSE 100 Index. It demerged back to separate companies in 1996.

History
The company was formed following the board of EMI accepting a £169 million offer from Thorn Electrical Industries in November 1979 to merge the groups. Thorn saw EMI as a good fit for the music and future home video market with Thorn manufacturing hardware and EMI providing content. EMI chief executive Bernard Delfont, chairman Sir John Read and Capitol Records' chief Bhaskar Menon joined the Thorn EMI board, with Read becoming deputy chairman of Thorn EMI. Thorn's chairman Sir Richard Cave became chairman of the merged group. In November the same year, most of the group's other leisure interests including Blackpool Tower, amusement parks, sport centres, piers, restaurants, pubs, four theatres, including the Prince Edward Theatre, and the Empire Ballroom and Cinema in Leicester Square in London were sold to Trust House Forte for £16 million. Lord Delfont became chairman and chief executive of THF's leisure division. In April 1986, Thorn EMI sold its film and video operations to businessman Alan Bond. Further divestment of operations took place during the 1990s. In 1991, its consulting, systems integration, and outsourcing service division – Thorn EMI Software, was a subject of a management buyout. == Operations ==
Operations
Thorn EMI's wide range of business covered the following principal areas of activity; retail/rentals, electronics, defence, software, music, television broadcasting, lighting and film and cinema. Retail and rental Thorn Television Rentals (TTR) comprised two companies on merger, Radio Rentals and DER (Domestic Electric Rentals Ltd). The EMI group also included the HMV stores. In 1987, Thorn EMI acquired Rent-A-Center in the United States for $594 million which had 469 stores on acquisition. Some stores were also converted to the Fona brand. By the 1990s, Rumbelows was making losses and Thorn closed the remaining 285 Rumbelows shops and 36 Fona stores in 1995. In 1995, Thorn EMI bought Dillons the Bookstore from Pentos and immediately closed 40 of the 140 Dillons bookstore locations. Of the remaining 100 stores, most kept the name Dillons, while the remainder were Hatchards and Hodges Figgis. Music The EMI label expanded greatly as part of Thorn EMI. In 1989, Thorn EMI bought a 50% interest in Chrysalis Records, buying the outstanding 50% in 1991. In one of its highest-profile and most expensive acquisitions, Thorn EMI took over Richard Branson's Virgin Records in 1992 for £510 million. Thames Television was acquired by Pearson Television in mid-1993. Lighting In 1987, the purchase of the Jarnkonst group of Nordic light fitting companies by Thorn Lighting and closure of the Buckie lamp factory signalled a new drive by parent Thorn EMI to trade an export and 'colonies' mentality for a multi-cultural, international outlook, one that took account of the forthcoming Single European Act. Gaining critical mass in lighting fixtures – defined as 10% market share in any one county – was identified as a priority. In 1988, Thorn EMI bought the French group Holophane to gain access to its luminaire subsidiary, Europhane. In November 1990, Thorn EMI announced that it had agreed to sell its principal light source interests to GE Lighting. Under the agreement, GE acquired the lamp plants at Enfield, Leicester and Wimbledon, as well as Thorn's 51% in SIVI Illuminazione in Italy and 100% holding in Gluhlampenfabrik Jahn. Thorn EMI subsequently closed its Merthyr Tydfil lamp factory, consolidated its UK distribution centres and sold its South African business. In 1994, following a leveraged management buy-out, Thorn Lighting Ltd floated on the London Stock Exchange as TLG plc (the Thorn Lighting Group). Defence From its formation until the mid-1990s, Thorn EMI was one of the United Kingdom's largest defence companies. The MEL Division, acquired from Philips, was involved in radar, electronic warfare, and communications. The MEL communications business was sold to Thomson-CSF, now Thales. In 1995, the various defence businesses were sold: • Thorn EMI Electro Optics to Pilkington Optronics • Thomson Thorn Missile Electronics to Thomson-CSF, now Thales • Thorn Sensors Group to Racal (to become Racal-Thorn Wells, now also part of Thales) • Thorn Microwave Devices (Microwave tubes and transmitters) was acquired by its management in an MBO, becoming TMD Technologies Ltd (acquired by CPI in 2021 and now part of CPI-EDB owned by Transdigm Inc). • Thorn Electron Tubes also acquired by its management becoming Electron Tubes Ltd. Machine Tools In the early 1980s, Thorn EMI Machine Tools manufactured Computerised Numerical Controlled (CNC) machine tools at its EMI-MEC Limited factory in Chandlers Ford, Eastleigh, Hampshire. Computer software Home software In the early to mid-1980s, Thorn EMI Video Programmes released a number of games for several home computer formats, initially under their own name. These included Computer War, Tank Commander, Snooker and Billiards, 8-Ball and Tournament Pool, Darts, Cribbage and Dominoes (1981), Gold Rush, Mutant Herd, Road Racer, Volcanic Planet (1983), and River Rescue (1982). They received a lukewarm reception with no major hits, although Snooker and Billiards did reach No. 6 in the UK Atari Charts. From 1981 until about 1983, Thorn EMI Video Programmes was based in the Thorn EMI head office, Orion House on Upper St Martin's Lane, near Seven Dials in central London before later moving to an office in Soho. The label was renamed Creative Sparks Advanced Product Development Centre This small subsidiary further developed existing products, as well as introducing new ones. It was based in St Lawrence House, Broad Street, Bristol. Manager: Derek Williams Accountant: John Peacock Secretaries: Dawn Chick & Rachel Bessell. Engineers: Jan Wojna Frank Shirvani Alan Drake John Linney Martyn Wyatt Consumer electronics Ferguson Ferguson Radio Corporation was owned by Thorn Electical Industries then subsequently by Thorn EMI until its sale to Thomson in 1987. Kenwood Limited sold small appliances and is now owned by DeLonghi. Thorn EMI's film and video interests Following the merger, EMI's film division was renamed Thorn EMI Screen Entertainment. The newly merged company continued the film interests EMI had acquired over the preceding decade; these had included the former Associated British Picture Corporation, and their facilities at Elstree Studios, Shenley Road, Borehamwood and ABC Cinemas. Thorn EMI Video was established in 1981. Thorn EMI released films on video from various film companies including Orion Pictures (First Blood, The Terminator), New Line Cinema (The Evil Dead, Xtro), and Universal (Bad Boys, Frances) in the 1980s. (The Thorn EMI Video label was also used for their early home software releases). In April 1986, Thorn EMI sold Thorn EMI Screen Entertainment and the film library, Thorn EMI Video, and ABC Cinemas to businessman Alan Bond. Bond, in turn, sold it to The Cannon Group a week later. HBO maintained an involvement the video company, which became HBO/Cannon Video. Cannon left operations and the company was eventually called HBO Video in 1987. Leisure Many of EMI's leisure interest were sold the year after the merger but EMI Social Centres chain of bingo halls remained with Thorn EMI. ==After demerger==
After demerger
• Thorn was purchased by Nomura Principal Finance Group in 1998, which subsequently became Terra Firma Capital Partners (who also owned EMI for a period). It disposed of Thorn in 2007 to a private buyer. • EMI announced in November 2011 that it would sell its music arm to Vivendi's Universal Music Group and its publishing business to a Sony/ATV consortium. ==References==
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