Midwich Announces Double Acquisition

stephen-fenby-managing-director-of-midwich

Midwich has acquired Holdan Limited in the UK and also Wired Limited in New Zealand.

Holdan is a value-added distributor of technology solutions focused on the broadcast, professional video and traditional audio-visual markets. The company is based in Glossop, near Manchester and currently employs 35 staff.

In the year ended 31 December 2015 Holdan reported annual turnover of £20.6m and profit before tax of £1.1 million. The offer for Holden was approximately £7.9m

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, Chris Daniels has stepped down as Holdan’s managing director, but will continue with the business on a full time basis before retiring in 2017. Allan Leonhardsen has become Holdan’s managing director with immediate effect. Allan joined the business in 2003 and has been the sales director for the past twelve years. Kieron Seth becomes sales and marketing director, adding sales to his previous marketing responsibilities.

The Holdan Acquisition has been funded from the existing cash resources of the Group. Midwich has options to acquire the remaining 25%, over the next three years on a pre-determined methodology linked primarily to earnings growth.

Wired is a small New Zealand based AV distributor with offices in Wellington and Auckland specialising in HD distribution solutions for the domestic and commercial market. The acquisition augments Midwich’s existing market position and capability in the Australian and New Zealand markets. Wired had a revenue of NZ $2 million in the year to 31 March 2016.

Stephen Fenby, Managing Director of Midwich commented, “I am delighted to welcome Allan, Chris, Kieron and the rest of the Holdan team to the Midwich Group. We have admired the expertise and reputation of Holdan for some time and look forward to working together in the future. 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.

We are also pleased to welcome Bruce Mackay and the rest of the Wired team to the Midwich Group. 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.”