Diss audio-visual distributor Midwich to buy Spanish firm for potential €11m

Stephen Fenby, Managing Director of Midwich in Diss.

Stephen Fenby, Managing Director of Midwich in Diss. - Credit: Eastern Daily Press © 2016

Audio-visual distributor Midwich has delivered on the promise of its chief executive to pursue growth through acquisition after snapping up a European supplier.

The purchase of a majority stake in Spanish-based Earpro S.A in a deal valuing it at €11m will bolster Midwich's continental presence and mean it now sells in more than 60% of the European market.

EDP/EADT Top100 firm Midwich, based in Diss, already has operations in France and Germany as well as Ireland and Australasia.

Managing director Stephen Fenby said: 'The acquisition of Earpro marks Midwich's entry into the Spanish and Portuguese 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 60% of the European audio visual market.

You may also want to watch:

'Earpro's expertise and reputation in the professional audio market represent a strong complementary fit to the group's activities.'

Earpro is a specialist audio and visual distributor focused on three technology categories – audio, lighting and video – distributes audio vendors including Shure and brands under the Harman umbrella.

Most Read

AIM-listed Midwich identified at its initial public offering last year that it was looking to grow operations through both organic development and selective acquisitions.

Earpro has headquarters in Barcelona and a team of 45 people. It generated unaudited revenues of around €21m in 2016, representing growth of around 7% on 2015.

Midwich has bought 88% of Earpro up front with options to buy the remaining 12%, currently held by the company's managing director, over the next three years. Consideration for the initial 88% of the company is split €5.8m on completion and €3.9m after 12 months, with the business expected to have net cash balances at completion of at least €3.2m.

Pre-tax profits hit £17.9m at Midwich last year as turnover grew by 17.8% to £370.1m.

The acquisition is the third in a year for the company, which bought Manchester-based firm Holdan and New Zealand company Wired following its flotation last year.

Become a Supporter

This newspaper has been a central part of community life for many years. Our industry faces testing times, which is why we're asking for your support. Every contribution will help us continue to produce local journalism that makes a measurable difference to our community.

Become a Supporter