Midwich acquires majority stake in Gebroeders van Domburg BV
StockMarketWire.com - Midwich acquired a majority stake in Gebroeders van Domburg BV, a specialist distributor of audio visual and lighting solutions in the Netherlands.
Van Domburg is a market leading audio visual distributor in the Netherlands.
It has a particular strength in the large format display market, with a developing interactive and technical product offering.
The company distributes key audio visual brands such as Samsung, NEC and AMX. Through its transport division, van Domburg also has an in-house warehousing and transportation capability based out of Rotterdam, a major European logistics centre.
The acquisition of van Domburg marks Midwich's entry into the Benelux, a market the group has identified as important in its international expansion.
The acquisition is further delivery of the group's strategy to grow operations through a combination of organic development and selective acquisitions.
The company is headquartered in Rotterdam and has a team of 54. It generated unaudited revenues of circa €30m in 2016.
The acquisition has been structured in line with the group's previous approaches, with 70% of van Domburg being acquired up front from the two joint managing directors, who will remain in their positions.
The initial consideration payable will total €2.1m and has been paid out of the Group's existing resources.
The transaction also includes an earn-out structure for the initial 70% stake which will be based on the business's performance in the period to 31 December 2018.
Midwich has options to acquire their remaining 30% stake over the next three years on a pre-determined methodology linked primarily to earnings growth.
Managing Director Stephen Fenby commented: "The acquisition of van Domburg marks Midwich's entry into the Benelux markets, enabling the group to trade with a broad customer base across a variety of customer segments.
"The addition of this territory to the group's portfolio increases Midwich's geographical coverage, with the Group operating in territories which account for approximately 70% of the European audio visual market.
"I look forward to welcoming the van Domburg team into the Midwich group and working with them to further develop this exciting market."
Story provided by StockMarketWire.com