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ELECTRA PARTNERS COMPLETES KINGFIELD HEATH & ISA ACQUISITION
*Creates UK & Ireland’s first business supplies ‘super wholesaler’ *
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7th June 2007 – Sheffield: Private equity fund manager, Electra Partners LLP, has completed on behalf of its client Electra Private Equity Plc (“Electra”), the purchase of two business supplies companies, Kingfield Heath and ISA, to form what is being described as the UK and Ireland’s first ‘super wholesaler’ of business supplies. The new organisation will deliver a combined turnover of £500 million. The sale is fully supported by the management teams of both companies.
The new organisation will be split into two separate companies. The larger of the two companies will be a ‘super wholesaler’ whose focus will be on providing office supplies, combining the massive expertise and product ranges of both Kingfield Heath and ISA. The second company will focus on direct sales of computer consumables to large corporate and public sector organisations.
Richard Martin, Chairman of Kingfield Heath, comments: “It is our plan to create a new ‘super wholesaler’ which for the first time will provide our resellers and dealers with a one-stop shop for office products and computer consumables. This is a powerful differentiator for us in the marketplace and a key benefit for our customers”.
Alan Barclay, the Chief Executive of Kingfield Heath, says: “The combination of expertise in computer consumables and business supplies will allow a step change in dealer and reseller support in the UK and Ireland. As industry consolidation continues to accelerate - in Europe and world-wide - increasing commercial scale becomes a business imperative, if the long term future of the wholesale channel and the independent reseller is to be assured.”
Bruce Robinson, Chief Executive of ISA, adds: “The creation of the new ‘super wholesaler’ will play a key part in ensuring the long term continued success and profitability of the dealers and resellers of business supplies in the UK and Ireland. It is essential for both Kingfield Heath and ISA to increase their commercial scale to ensure an efficient streamlined distribution platform for our customers and suppliers”.
The second company will be formed from the existing ISA Supplies Team business, which sells computer consumables such as printer supplies, direct to end users primarily in the large corporate and public sectors. This new organisation will be formed with independent management, to ensure clear channel discipline.
Tim Syder, Deputy Managing Partner of Electra Partners, says: “Kingfield Heath and ISA are both strong, profitable businesses with formidable reputations in their respective markets. Bringing these two businesses together will generate compelling benefits for customers, employees, suppliers and investors alike”. Electra Partners are pleased The Royal Bank of Scotland continues to support this business through the provision of long-term financing facilities.
The organisational restructure will now be the focus of the combined management team, led by Richard Martin, who comments: “This process will be managed with considerable care over the next few months. During this time, it will be business as usual for both organisations, which will continue to trade exactly as before. We will continue to communicate the details of our plans, as we move forward with our customers, employees and suppliers”.
Kingfield Heath has been divested by Legal & General Ventures. ISA has been divested by ISA Trading. The financial advisor for the sale was Ernst & Young.
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