Midwich has announced the acquisition of Holdan Limited in the UK for a maximum consideration of approximately £7.9m, and the acquisition of 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. Midwich has acquired 75 percent of the issued share capital of Holdan from Chris Daniels and Allan Leonhardsen. The Holdan Acquisition has been funded from the existing cash resources of the Group and will offer Midwich the option to acquire the remaining 25 percent, over the next three years on a pre-determined methodology.
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, having been the Sales Director for the last 12 years. Kieron Seth will replace Allan as Sales and Marketing Director.
Stephen Fenby, Managing Director of Midwich said, “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.”
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.
Stephen added, “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.”
As outlined at the time of IPO, the acquisitions of Holdan and Wired are in line with Midwich's strategy to grow operations through a combination of organic development and selective infill acquisitions.