1 December 2017
Midwich Group plc
("Midwich" or "the Group")
Acquisition of Sound Technology Limited
Midwich, a specialist audio visual and document solutions distributor to the trade market with operations across Europe and Australasia, is pleased to announce it has acquired the entire issued share capital of Sound Technology Limited ("Sound Technology" or the "Company"), a specialist UK-based distributor of audio and lighting solutions.
Established in 1979, Sound Technology has built a market-leading position in the value-add distribution of audio products for professional and commercial audio applications, and select electronic musical instruments. The Company distributes a number of key exclusive brands, including several under the Harman audio and (recently) lighting umbrella. Based in Letchworth Garden City, the Company supports its core distribution business with a sophisticated range of pre and post-sales support, product set up and repair, and demonstration facilities.
In the year ended 30 September 2017, the Company generated unaudited revenue of around £21 million.
Midwich has acquired 100% of the share capital of the Company from its founder Robert Wilson MBE, who will remain in the business as its Chairman. Sound Technology's current senior management team of David Marshall (Managing Director), Judith Kingston (Finance Director), Ian Cullen (Marketing Director) and Greg Niven (Sales Director) will also remain with the Company and use their substantial experience to continue to build the business. The consideration is in line with the Group's traditional model, with an initial cash sum paid on completion and a fixed deferred element paid in cash six months post completion, both financed out of the Group's existing resources. The Board expects the acquisition of Sound Technology to be earnings accretive in 2018.
Stephen Fenby, Managing Director of Midwich commented:
"The acquisition of Sound Technology substantially enhances the Group's ability to provide world leading products and high value add audio solutions to our trade customers. In addition, I believe that the high level of support Sound Technology provides to its vendors is directly aligned with our proven strategy as a specialist distributor. The Company's recent entry into the professional lighting market is an exciting proposition and complements our current offering in the Benelux and Iberia regions. I look forward to welcoming the Sound Technology team into the Midwich Group, and working with them to further develop this market place."
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 5970 |
FTI Consulting Alex Beagley / Sam Power |
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, the Benelux 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. Key components of the Group's growth strategy are expansion of its specialist business areas, alongside further expansion of its international operations and footprint into strategically targeted jurisdictions.
For further information, please visit www.midwichgroupplc.com
