News broke on Friday that London-based Beta Distribution was in talks to acquire Entatech, but the firm has now confirmed that the deal is off. In response to the news, Steve Soper, managing director at Beta, confirmed that the company had been in detailed talks with Entatech, but that it "has decided not to pursue" its interest.
"Although we have been in discussions for some time, information obtained during detailed due diligence meant we were unable to continue", stated Soper. "It is disappointing because this is an industry sector that we are extremely interested in and are looking to develop."
The initial news had raised a few eyebrows as Beta hasn't really been known for industry acquisitions, but Soper said that company has indeed pursued opportunities in the past. "We have been just as active as our competitors in looking for acquisition opportunities, but so far nothing has materialised", he added. "We have a five year plan that is based around organic growth, but if the right opportunity came along to increase that growth by acquisition, then we would consider it very seriously, as we have done with Entatech."
Regardless of the situation around this fallen-through deal, the company has assured investors that it has the capital for such acquisitions, with annual revenues now approaching £200 million. Beta has also seen double-digit growth every year for the past few years and will continue to look for suitable acquisitions.
"We will look to buy a company that can contribute to our business, that may have expertise that we currently don’t have. Entatech fitted the bill, with experienced people, important supplier relationships and a well-established customer base but in the end, it wasn’t to be."