Midwich announces two acquisitions

Audio visual and documents solutions distributor Midwich announced the acquisition of UK-based Holdan for up to £7.9m and New Zealand’s Wired for an undisclosed sum.

Based in Glossop, near Manchester, Holdan is a value-added distributor of technology solutions focused on the broadcast, professional video and traditional audio-visual markets. In the year ended 31 December 2015, it generated annual turnover of £20.6m and pre-tax profit of £1.1m.

Midwich has acquired 75% of the issued share capital of Holdan from Chris Daniels and Allan Leonhardsen. In line with the company's long-term succession plan, Daniels has stepped down as Holdan's managing director, but will continue with the business on a full time basis before retiring in 2017.

Meanwhile, Leonhardsen has become Holdan's managing director with immediate effect.

The acquisition was funded from the group’s existing cash resources and Midwich has options to acquire the remaining 25% stake over the next three years on a pre-determined methodology linked primarily to earnings growth.

Wired is a small NZ-based AV distributor with offices in Wellington and Auckland specialising in HD distribution solutions for the domestic and commercial market. Midwich said the acquisition builds on its existing market position and capability in the Australian and New Zealand markets. Wired generated revenue of NZ$2m in the year to the end of March.

Managing director Stephen Fenby said: “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.

“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."

At 1545 BST, Midwich shares were up 0.8% to 241.99p.