Midwich Group PLC Potential Acquisition (4324I)

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RNS Number : 4324I

Midwich Group PLC

11 December 2020

11 December 2020

Midwich Group plc

("Midwich" or "the Group")

Potential Acquisition

Midwich Group (AIM: MIDW), a specialist audio visual distributor to the trade market with operations across the UK and Ireland, Continental Europe, Asia-Pacific and North America, announces that it is in advanced discussions with Nicolas M. Kyvernitis Electronics Ent., NMK Middle East FZE and Edge Electronics Trading LLC (collectively "the NMK Group") , a value-added distributor of AV products in the Middle Eastern market, around the potential acquisition of all or part of the NMK Group. In the pre Covid year ended 31 December 2019, the NMK Group generated revenues of approximately AED104 million (GBP21.6 million) and net profit of AED17.9 million (GBP3.7 million). Net assets as at 31 December 2019 were AED73.5 million (GBP14.8 million). There is no certainty that a transaction will take place. A further announcement will be made as appropriate.

Note : Exchange rate used GBP1 = AED 4.96

For further information:

 
 Midwich Group plc                           Tel: [phone] 
  Stephen Fenby, Managing Director            9200 
  Stephen Lamb, Finance Director 
 Investec Bank plc (NOMAD and Joint Broker   Tel: [phone] 
  to Midwich)                                 5970 
  James Rudd 
  Carlton Nelson 
 Berenberg (Joint Broker to Midwich)         Tel: [phone] 
  Ben Wright                                  7800 
  Mark Whitmore 
  Alix Mecklenberg-Solodkoff 
 FTI Consulting                              Tel: [phone] 
  Alex Beagley                                1000 
  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, Continental Europe and Asia-Pacific and North America. The Group's long-standing relationships with over 500 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 1,000 employees across the UK and Ireland, Continental Europe, 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

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December 11, 2020 09:25 ET (14:25 GMT)