Midwich expands into Benelux with Van Domburg acquisition8 September 2017
Van Domburg Partners is particularly strong in the large-format display market, distributing key brands such as Samsung, NEC and AMX. Through its transport division, Van Domburg also has in-house warehousing and transportation capabilities in Rotterdam, a major logistics centre.
The company, which generated unaudited revenues of circa €30 million in 2016, is headquartered in Rotterdam and has a team of 54.
From the outset of our conversations with the Midwich Group, the synergies between our two businesses were evident.
Ed van Domburg and Rick ter Wee
The acquisition of van Domburg marks Midwich’s entry into the Benelux market; the Midwich Group currently operates in the UK, Ireland, France, Germany, Iberia and Australasia.
The acquisition has been structured in line with the group’s previous approaches. For an initial consideration of €2.1m, paid from its existing resources, the group has acquired 70% of Van Domburg from the two joint managing directors, who will remain in their positions. The transaction also includes an earn-out structure for the initial 70% stake, which will be based on the business’s performance in the period to 31 December 2018. Midwich has options to acquire the remaining 30% stake over the next three years on a pre-determined fomula linked primarily to earnings growth.
Stephen Fenby, managing director, Midwich Group, commented: “The acquisition of Van Domburg marks Midwich’s entry into the Benelux markets, enabling the group to trade with a broad customer base across a variety of customer segments. The addition of this territory to the group’s portfolio increases Midwich’s geographical coverage, with the group operating in territories which account for approximately 70% of the European audiovisual market. I look forward to welcoming the Van Domburg team into the Midwich Group, and working with them to further develop this exciting market.”
In recent years Van Domburg has developed its video portfolio, offering solutions in areas including digital signage, control and connectivity. Additionally, its subsidiary Dutch Light Pro distributes high-end lighting products primarily to electrical contractors and installers; a key part of its proposition is to provide lighting design consultancy services.
Ed van Domburg and Rick ter Wee (pictured L-R), managing directors of Van Domburg, said: “From the outset of our conversations with the Midwich Group, the synergies between our two businesses were evident. With our strong local position, and with the backing and support of Midwich, it is clear this exciting partnership will enable Van Domburg to continue our growth in the audiovisual and high-end lighting markets. Midwich’s audiovisual specialism, and international market-leading position made them the ideal partner for us. We look forward to working closely with them to develop our business in the Benelux.”
Thomas Sumner, European director, Midwich Group commented: “As with any Midwich acquisition, our focus will continue to be on enhancing the service and support we provide our customers and vendor partners. We are delighted a market leader in specialist audiovisual distribution has again decided to join the Midwich Group. We look forward to working with them and investing in this important market.”