Business
Acquisition of Sound Technology Limited
Acquisition of Sound Technology Limited.
About this update from Midwich Group Plc
[{"type":"text","content":"\n \nRNS Number : 0610Y Midwich Group PLC 01 December 2017 \n\n1 December 2017\n \nMidwich Group plc\n(\"Midwich\" or \"the Group\")\n \nAcquisition of Sound Technology Limited\n \nMidwich, a specialist audio visual and document solutions distributor to the trade market with operations across Europe and Australasia, is pleased to announce it has acquired the entire issued share capital of Sound Technology Limited (\"Sound Technology\" or the \"Company\"), a specialist UK-based distributor of audio and lighting solutions.\n \nEstablished in 1979, Sound Technology has built a market-leading position in the value-add distribution of audio products for professional and commercial audio applications, and select electronic musical instruments. The Company distributes a number of key exclusive brands, including several under the Harman audio and (recently) lighting umbrella. Based in Letchworth Garden City, the Company supports its core distribution business with a sophisticated range of pre and post-sales support, product set up and repair, and demonstration facilities. \n \nIn the year ended 30 September 2017, the Company generated unaudited revenue of around £21 million.\n \nMidwich has acquired 100% of the share capital of the Company from its founder Robert Wilson MBE, who will remain in the business as its Chairman. Sound Technology's current senior management team of David Marshall (Managing Director), Judith Kingston (Finance Director), Ian Cullen (Marketing Director) and Greg Niven (Sales Director) will also remain with the Company and use their substantial experience to continue to build the business. The consideration is in line with the Group's traditional model, with an initial cash sum paid on completion and a fixed deferred element paid in cash six months post completion, both financed out of the Group's existing resources. The Board expects the acquisition of Sound Technology to be earnings accretive in 2018.\n \n \nStephen Fenby, Managing Director of Midwich commented: \n \n\"The acquisition of Sound Technology substantially enhances the Group's ability to provide world leading products and high value add audio solutions to our trade customers. In addition, I believe that the high level of support Sound Technology provides to i...