Midwich acquires majority stake in Gebroeders van Domburg BV

07:33 07/09/2017
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."



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