7 September 2017
Midwich Group plc
("Midwich" or "the Group")
Acquisition of Gebroeders van Domburg B.V.
Midwich, a specialist audio visual and document solutions distributor to the trade market with operations in the UK and Ireland, France, Germany, Iberia and Australasia, is pleased to announce it has acquired a majority stake in Gebroeders van Domburg B.V. ("van Domburg" or the "Company"), a specialist distributor of audio visual and lighting solutions in the Netherlands.
Van Domburg is a market leading audio visual distributor in the Netherlands. It has a particular strength in the large format display market, with a developing interactive and technical product offering. The Company distributes key audio visual brands such as Samsung, NEC and AMX. Through its transport division, van Domburg also has an in-house warehousing and transportation capability based out of Rotterdam, a major European logistics centre.
The acquisition of van Domburg marks Midwich's entry into the Benelux, a market the Group has identified as important in its international expansion. The acquisition is further delivery of the Group's strategy to grow operations through a combination of organic development and selective acquisitions.
The Company is headquartered in Rotterdam and has a team of 54. It generated unaudited revenues of circa €30 million in 2016.
The acquisition has been structured in line with the Group's previous approaches, with 70% of van Domburg being acquired up front from the two joint managing directors, who will remain in their positions. The initial consideration payable will total €2.1m and has been paid out of the Group's existing resources. The transaction also includes an earn-out structure for the initial 70% stake which will be based on the business's performance in the period to 31 December 2018. Midwich has options to acquire their remaining 30% stake over the next three years on a pre-determined methodology linked primarily to earnings growth.
Stephen Fenby, Managing Director of Midwich commented:
"The acquisition of van Domburg marks Midwich's entry into the Benelux markets, enabling the Group to trade with a broad customer base across a variety of customer segments. The addition of this territory to the Group's portfolio increases Midwich's geographical coverage, with the Group operating in territories which account for approximately 70% of the European audio visual market. I look forward to welcoming the van Domburg team into the Midwich Group and working with them to further develop this exciting market."
Enquiries:
Midwich Group plc Stephen Fenby, Managing Director Anthony Bailey, Finance Director |
Tel: +44 (0) 1379 649 200 |
Investec Bank plc James Ireland / James Rudd Carlton Nelson / Robert Baker |
Tel: +44 (0) 20 7597 4000 |
FTI Consulting Oliver Winters / Alex Beagley / George Robinson |
Tel: +44 (0) 20 3727 1000 |
Notes to Editors:
Midwich is a specialist AV and document solutions distributor to the trade market, with operations in the UK and Ireland, France, Germany, Iberia and Australasia. The Group's long-standing relationships with over 300 vendors, including blue-chip organisations such as Samsung, LG, Epson and NEC, supports a comprehensive product portfolio across major audio visual categories such as large format displays, projectors, digital signage and printers. The Group operates as the sole or largest in-country distributor for a number of its vendors in their respective product sets. The Directors attribute this position to the Group's technical expertise, extensive product knowledge and strong customer service offering built up over a number of years. The Group has a large and diverse base of approximately 10,000 customers, most of which are professional AV integrators and IT resellers serving sectors such as corporate, education, retail, residential and hospitality. Although the Group does not sell directly to end users, it believes that the majority of its products are used by commercial and educational establishments rather than consumers.
Initially a UK only distributor, the Group now has over 600 employees, and in the year to 31 December 2016, 33 per cent of the Group's revenues were derived from outside the UK and Ireland. A core component of the Group's growth strategy is further expansion of its international operations and footprint into strategically targeted jurisdictions.
For further information, please visit www.midwichgroupplc.com
