Acquisition of Sound Technology Limited

Midwich, a specialist audio visual and document solutions distributor to the trade market with operations in the UK and Ireland, France, Germany, Benelux, Iberia and Australasia, is pleased to announce it has acquired Sound Technology Limited (“Sound Technology” or the “Company”), a value add distributor of audio and lighting solutions in the UK.  Sound Technology will continue to operate as an independent company, as a wholly owned subsidiary of Midwich Limited.

Sound Technology is a specialist distributor focused on three technology categories – audio, musical instruments and lighting, and achieved annual unaudited revenue in excess of £20 million in the year to 30 September 2017.  The Company is based in Letchworth Garden City and has a notable heritage in the professional audio and musical instrument markets where the business operates with mid to high end, specialist brands.

Sound Technology has a number of key exclusive brands, including several under the Harman audio and lighting umbrella, as well as high profile musical instrument brands such as Nord.  The deal follows Midwich’s acquisition of specialist Iberia based audio and lighting distributor Earpro earlier in the year and supports the Group’s strategy of growing its specialist value add offering.

Stephen Fenby, Managing Director, Midwich Group commented:

“We have watched the success of Sound Technology over recent years and are delighted to have persuaded Bob, Dave and the team to join our Group.  The acquisition of Sound Technology substantially enhances the Group’s ability to provide world leading products and high value add audio solutions to our trade customers. In addition, I believe that the high level of support Sound Technology provides to its vendors is very close to our proven strategy as a specialist distributor.  The Company’s recent entry into the professional lighting market is an exciting proposition and complements our current offering in the Benelux and Iberia regions.  I look forward to welcoming the Sound Technology team into the Midwich Group, and working with them to further develop this market place”

The acquisition provides the Group with access to a number of high profile audio brands, and enhances the Group’s ability to provide complete audio visual solutions to its customers. The acquisition augments Midwich’s existing position in the audio market and it will continue to distribute commercial audio products through its existing vendors.

Midwich has acquired 100% of the share capital of the Company from its founder and current owner Robert Wilson MBE, who will remain in the business as its Chairman.  The current senior management team of David Marshall (Managing Director), Judith Kingston (Finance Director), Ian Cullen (Marketing Director) and Greg Niven (Sales Director) will use their substantial experience to continue to build the business.

David Marshall, Managing Director of Sound Technology commented:

“At a time when our company is going through tremendous growth in our original MI and pro audio markets, and of course through our new professional lighting division, we are delighted to be joining the Midwich Group. Having the financial resource for sustained expansion, together with access to a wealth of shared expertise, provides a structure for Sound Technology to continue to develop markets for our represented brands, and to enhance the service and support provided to our customers.” 

Enquiries:

Midwich Group plc

Stephen Fenby, Managing Director

Anthony Bailey, Finance Director

 

Tel: +44 (0) 1379 649 200

Sound Technology Ltd   
Robert Wilson, Chairman
David Marshall, Managing Director
Ian Cullen, Marketing Director

Tel: + 44 (0) 1462 480 000

Investec Bank plc

James Ireland / James Rudd

Carlton Nelson / Robert Baker

 

Tel: +44 (0) 20 7597 4000

FTI Consulting

Alex Beagley / Sam Power

 

Tel: +44 (0) 20 3727 1000

 

Notes to Editors:

Midwich is a specialist AV and document solutions distributor to the trade market, with operations in the UK and Ireland, France, Germany, Iberia, Netherlands and Australasia. The Group's long-standing relationships with over 300 vendors, including blue-chip organisations such as Samsung, LG, Epson and NEC, supports a comprehensive product portfolio across major audio visual categories such as large format displays, projectors, digital signage and printers. 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 approximately 10,000 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 over 650 employees, and in the year to 31 December 2016, 33 per cent of the Group's revenues were derived from outside the UK and Ireland. Key components of the Group's growth strategy are expansion of its specialist business areas, alongside further expansion of its international operations and footprint into strategically targeted jurisdictions.

For further information, please visit www.midwichgroupplc.com