AN award-winning television and stereo furniture manufacturer has been bought for £10 million by the UK's largest home electronics group.

Alphason Designs, which celebrates its 21st birthday this year, supplies 2,500 retail outlets across the UK, including John Lewis, Comet and Argos.

It employs 72 people at its base in Bolton Road, Atherton.

The deal with Kent-based Armour Group will see the company run as a separate unit within the Armour Home Electronics division.

The settlement consists of £10 million in shares and cash, with a further £10 million being paid in twelve months, if first year profit targets are met.

Alphason has enjoyed strong growth over the past four years, with sales increasing from £4.1 million in 2001 to £12.7 million in the year ended May 31, 2005, and profits increasing from £0.2 million to £2.5 million.

Glenn McClelland, Managing Director of Armour Home Electronics, said: "The market for specialist audio visual 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 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 cathode ray tube televisions will be changed for LCDs and plasmas with a consequential increase in demand for the associated accessories such as audio-visual furniture.

"We expect Alphason to benefit from this conversion."

Mr McClelland added that no job losses were expected.

John Reddington, of Alphason, said: "We are delighted to be joining Armour Home Electronics. The move gives us access to Armours enormous resources in design and development, global sourcing and its excellent product range."

George Dexter, chief executive at Armour Group 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 generally difficult marketplace.

"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 cathode ray tube to flat-screen TVs."