Business
Acquisition of Gebroeders van Domburg B.V.
Acquisition of Gebroeders van Domburg B.V..
About this update from Midwich Group Plc
[{"type":"text","content":"\n \nRNS Number : 0471Q Midwich Group PLC 07 September 2017 \n\n7 September 2017\n \nMidwich Group plc\n(\"Midwich\" or \"the Group\")\n \nAcquisition of Gebroeders van Domburg B.V.\n \nMidwich, a specialist audio visual and document solutions distributor to the trade market with operations in the UK and Ireland, France, Germany, Iberia and Australasia, is pleased to announce it has acquired a majority stake in Gebroeders van Domburg B.V. (\"van Domburg\" or the \"Company\"), a specialist distributor of audio visual and lighting solutions in the Netherlands.\n \nVan 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.\n \nThe 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. \n \nThe Company is headquartered in Rotterdam and has a team of 54. It generated unaudited revenues of circa €30 million in 2016.\n \nThe 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. \n \n \nStephen Fenby, Managing Director of Midwich commented: \n \n\"The acquisition of van Domburg marks Midwich's entry into the Benelux markets, enabling the Group to trade wit...