Midwich Group acquires Sound Technology

Midwich acquired the group from its founder Robert Wilson, who was set to remain as Midwich's chairman, for an undisclosed amount.

The firm said the consideration was "in line with the group's traditional model" and would be funded with an initial cash sum and a fixed deferred element paid in cash six months after completion, both financed out of existing resources.

Midwich anticipated Sound Technology would start turning a profit in the next financial year.

Sound Technology generated unaudited revenues of almost £21m in the year ended 30 September.

Stephen Fenby, managing director of Midwich, said, "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," Fenby added.

As of 1130 GMT, shares had grown 2.25% to 521.50p.