Midwich has announced that 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.
Van 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.
The acquisition of van Domburg marks Midwich’s entry into 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.
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, Managing Director of Midwich 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. I look forward to welcoming the van Domburg team into the Midwich Group and working with them to further develop this exciting market.”
Stephen Fenby, Managing Director of Midwich: “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.”