13th Nov 2023 14:35
(Alliance News) - Midwich Group PLC on Monday said it entered into a binding agreement to buy prodyTel Distribution GmbH, which is based in Stein near Nuremberg in Germany.
The Norfolk, England-based specialist audio visual distributor to the trade market said through its subsidiary Kern & Stelly Medientechnik GmbH, it is paying EUR8.5 million in cash for 51% of share capital in the distributor of professional audio and technical solutions products.
For the remaining 49%, Midwich said put/call options are in place for June 2024 for a fixed cash consideration of EUR8.1 million. Additionally, Midwich will pay up to EUR5.5 million extra linked to performance, in cash by 2026.
prodyTel reported revenue of around EUR22.0 million for 2022, alongside pretax profit of EUR4.0 million. Gross assets as at December 31 stood at EUR6.3 million.
Christian Carrero, managing director of prodyTel, said: "I believe this deal can bring prodyTel and its people to the next level in distribution and equally will allow us to share our expertise in audio and AV project management to support Kern & Stelly to further grow its business in Germany. Personally, I am really excited to contribute to the group with my 25 years of knowledge in the global audiovisual market and am already looking forward to many new and exciting projects and ideas within Kern & Stelly and Midwich."
Stephen Fenby, Midwich managing director, said the acquisition "will strengthen our technology offering in the DACH [Germany-Austria-Switzerland] region. prodyTel has a strong reputation in the market which has enabled it to attract top tier brands. Customers greatly value the expertise the company is able to offer, and will now be able to benefit from the combined portfolio of prodyTel and Kern & Stelly. We look forward to working with Christian and his team to build on the success the business has experienced in recent years."
Midwich shares were 0.5% lower at 376.00 pence each on Monday afternoon in London.
By Tom Budszus, Alliance News reporter
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