Midwich Group PLC Acquisition of Sound Technology Limited (0610Y)
01 December 2017 - 6:01PM
UK Regulatory
TIDMMIDW
RNS Number : 0610Y
Midwich Group PLC
01 December 2017
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 GBP21 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 Tel: +44 (0) 1379
Stephen Fenby, Managing Director 649 200
Anthony Bailey, Finance Director
Investec Bank plc Tel: +44 (0) 20 7597
James Ireland / James Rudd 5970
Carlton Nelson / Robert Baker
FTI Consulting Tel: +44 (0) 20 3727
Alex Beagley / Sam Power 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
This information is provided by RNS
The company news service from the London Stock Exchange
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