Midwich buys Dutch distributor Van Domburg
Midwich, the AV distributor with operations in the UK and Ireland, France, Germany, Iberia and Australasia, has acquired a majority stake (70% at a cost of €2.1m) in Gebroeders van Domburg, an AV distributor in the Netherlands.
Van Domburg Partners has particular strength in the large format display market, with a developing interactive and technical product offering. It distributes AV brands such as Samsung, NEC and AMX. Through its transport division, Van Domburg also has in-house warehousing and transportation capabilities based out of Rotterdam.
The Company is headquartered in Rotterdam and has a team of 54. It generated unaudited revenues of circa €30 million 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.
Stephen Fenby, MD, Midwich Group 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"
The acquisition signals Midwich’s entry into the Benelux, a market the Group has identified as important in its international expansion.
Midwich will acquire a majority stake from the two joint MDs, with the option to acquire the remaining shares over the next three years. The Company’s MDs will continue to be responsible for the management of the business, and will remain in their current positions.
Rick ter Wee and Ed van Domburg (MDs), Van Domburg commented: "From the outset of our conversations with the Midwich Group, the synergies between our two businesses were evident. With our strong local position, and with the backing and support of Midwich, it is clear this exciting partnership will enable Van Domburg to continue our growth in the audio visual, and high-end lighting markets. Midwich’s audio visual specialism, and international market leading position made them the ideal partner for us. We look forward to working closely with them to develop our business in the Benelux."
Headquartered near Rotterdam with a team of 54, the company has developed its technical video product portfolio, offering solutions in digital signage, control and connectivity amongst others.