Midwich has confirmed its acquisition of Wired and Holden. Both companies were acquired for a grand total of £7.9 million and will bolster Midwich’s strategy to grow its operations via selective infill acquisitions.
Holden, a technology facing distributor in video, broadcast, and audio-visual markets is based in Glossop near Manchester and currently employs 35 staff members. In addition to hardware distribution, Holdan also has an export business and the company traded with five hundred and fifteen customers in 2015, up 11 per cent from the previous year. The company also reported an annual turnover of £20.6 million during the same year.
Wired, an HD distribution solution provider located in New Zealand is a small AV distributor with offices in Wellington and Auckland. The company made $2 million profit in the year leading up to the end of March 2016.
Stephen Fenby, managing director of Midwich said: “I am delighted to welcome Allan, Chris, Kieron and the rest of the Holdan team to the Midwich Group. We have admired the expertise and reputation of Holdan for some time and look forward to working together in the future. We recognised some time ago that the broadcast and professional video markets are a natural adjunct to our traditional audio-visual activity.
"Having made some headway in penetrating these markets ourselves, we believe that the expertise and focus of Holdan will give Midwich the ability to provide a more comprehensive value-added service to our customers in the UK and overseas. Similarly, Midwich’s vast reach into the audio-visual market provides Holdan’s vendors with an opportunity to expand further into a growing segment.”
He also said: “We are also pleased to welcome Bruce Mackay and the rest of the Wired team to the Midwich Group. The acquisition in New Zealand supports two of our key strategic objectives in the region, to provide outstanding value added support to our customers and vendors, and to continue the rapid growth of our display solutions business.”
Diss-based Midwich has acquired 75 per cent of Holdan’s issued share capital from Chris Daniels and Allan Leonhardsen. Daniels has stepped down as Holdan’s managing director, but will remain an active part of the business until his retirement in 2017. Leonhardsen has already stepped into his role and Kieron Seth has become the sales and marketing director.
Midwich will also have the opportunity to purchase the remaining 25 per cent of Holdan over the next 3 years which will be determined by earnings growth.