REG - Midwich Group PLC - Acquisition of Nimans Limited

MidwichAnnouncement

08/02/2022 07:00

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RNS Number : 9544A  Midwich Group PLC  08 February 2022

8 February 2022

Midwich Group plc

("Midwich" or the "Group")

 

Acquisition of Nimans Limited

 

Midwich Group (AIM: MIDW), a global specialist audio visual distributor to the
trade market is pleased to announce it has entered a binding agreement to
acquire Nimans Limited ("the Company") and its subsidiaries (collectively
"Nimans") from Nycomm Holdings Limited.  Nimans is a UK based specialist
distributor of unified communications, telecoms, collaboration and audio
visual technologies.

 

Based near Manchester, Nimans was founded in 1981 and has built a strong
presence and reputation in the UK telephony hardware market.  In recent years
the business has expanded successfully into new market areas such as unified
communications, VOIP solutions, security and networking.  Key brand
relationships include Yealink, Jabra, and BT.  The Company trades with over
2,500 telephony, IT and retail customers and employs over 200 staff.

 

In its latest audited financial statements, for the year ended 31 December
2020, Nimans generated consolidated revenues of £114.3 million and profit
before tax of £5.8 million.  Net assets (excluding net cash balances) at 31
December 2020 were £11.4 million.

 

The transaction has been undertaken on a cash free/ debt free basis.
 Completion is subject only to FCA approval and expected in the first half of
2022.

 

Stephen Fenby, Midwich Group Managing Director, commented:

 

"Nimans is a long-established business with a great reputation for technical
excellence, customer service and logistics.  Its traditional telecoms market
has experienced significant change in recent years, bringing with it new
revenue opportunities which the Company has developed strongly, in areas such
as unified communications, video conferencing, security and networking.

 

Midwich continues to grow its UC offering and Nimans brings further
opportunities to the Group, in terms of skills in new product and technology
areas, service offerings to the trade, a large new customer base and new
vendor relationships.

 

I believe that the combined skill sets and capabilities of Midwich and Nimans
bring a unique offering into the market with the ability to provide complex
solutions involving multiple technologies. I look forward to welcoming the
whole Nimans team into the Midwich Group."

 

Further Details of the Transaction

 

The deal will be funded from Midwich's existing facilities and is expected to
be earnings enhancing in the year to 31 December 2022.

 

The aggregate consideration of £27.5 million will be paid in cash.  The
initial consideration of £16.5 million payable upon completion of the
acquisition will be followed by two fixed instalments of £5.5 million each
after twelve and twenty four months respectively.

 

 

 Midwich Group plc                                         +44 (0) 1379 649200

Stephen Fenby, Managing Director

Stephen Lamb, Finance Director
 Investec Bank plc (NOMAD and Joint Broker to Midwich)     +44 (0) 20 7597 5970

 Carlton Nelson / Ben Griffiths
 Berenberg (Joint Broker to Midwich)                       +44 (0) 20 3207 7800

Ben Wright / Mark Whitmore / Alix Mecklenberg-Solodkoff
 FTI Consulting                                            +44 (0) 20 3727 1000

Alex Beagley / Tom Hufton / Rafaella de Freitas

 

About Midwich Group

 

Midwich is a specialist AV distributor to the trade market, with operations in
the UK and Ireland, EMEA, Asia Pacific and North America. The Group's
long-standing relationships with over 600 vendors, including blue-chip
organisations, support a comprehensive product portfolio across major audio
visual categories such as large format displays, projectors, digital signage
and professional audio. The Group operates as the sole or largest in-country
distributor for a number of its vendors in their respective product sets.

 

The Directors attribute this position to the Group's technical expertise,
extensive product knowledge and strong customer service offering built up over
a number of years. The Group has a large and diverse base of over 20,000
customers, most of which are professional AV integrators and IT resellers
serving sectors such as corporate, education, retail, residential and
hospitality. Although the Group does not sell directly to end users, it
believes that the majority of its products are used by commercial and
educational establishments rather than consumers.

 

Initially a UK only distributor, the Group now has around 1,300 employees
across the UK and Ireland, EMEA, Asia Pacific and North America. A core
component of the Group's growth strategy is further expansion of its
international operations and footprint into strategically targeted
jurisdictions.

 

For further information, please visit www.midwichgroupplc.com
(http://www.midwichgroupplc.com/)

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