Acal PLC
14 October 2002
FOR IMMEDIATE RELEASE 14 October 2002
ACAL plc
(A leading pan-European, value added distributor providing specialist
design-in, sales and marketing services for international suppliers)
SALE OF ACAL'S CISCO DISTRIBUTION BUSINESS
Acal plc announces the sale of its Cisco Distribution Business ("CDB") based in
the Netherlands, to Ingram Micro BV. CDB, which was engaged in the distribution
of Cisco networking products and the provision of certain related services,
operated as a division of Acal Nederland BV and shared the administration and
support facilities of that company with its other activities, all of which will
continue. In the year ended 31st March 2002 CDB had sales of €37.4 million (£23
million) and earnings before interest, taxation and amortisation of goodwill
(EBITA) of approximately €0.95 million (£0.58 million). Ingram has paid €1.74
million (£1.1 million) for the business and a further €3.14 million (£2.0
million) in respect of its inventory and certain other assets, both amounts
being settled in cash to the aggregate extent of €3.73 million (£2.4 million)
now and the balance of €1.15 million (£0.7 million) in two instalments over the
next few months. The remaining assets and liabilities of CDB will be realised
in the ordinary course. The proceeds of the sale will be applied, in the first
instance, in reducing the net borrowings of the Acal Group.
Acal's "centre of excellence" for Cisco has been in the Netherlands where it has
been a Cisco distributor for eight years and was awarded "Cisco Distribution
Partner" status last year.
Commenting on the sale, Tony Laughton, Acal's Chief Executive, said:-
"Our Cisco distribution business has grown significantly in recent years,
culminating in our appointment as a Cisco Distribution Partner last year.
Strategically, for its further development it fits better with Ingram's
pan-European activities in this area, and we are pleased that they are buying
it. I would like to thank the team which helped us build this business over the
years, and wish them every success in the future.
Our IT activities in the Netherlands and elsewhere will now concentrate on the
development and growth of niche higher margin high-end networking and security
products as well as Headway document management and storage, fibre channel
connectivity and the EAF IT parts services businesses."
For further information:-
Tony Laughton Chief Executive 01483 544500
Jim Virdee Finance Director 01483 544500
Brian Coleman-Smith / Amanda Sheehy Beattie Financial 020 7398 3300
Notes to Editors:-
1 The Acal Group is a leading European, value-added distributor providing
specialist design-in, sales and marketing services for international
suppliers in the fields of Electronic Components, Information Technology
Products, IT Parts Services and Industrial Controls. Its value-added
philosophy and geographic coverage enables Acal to provide specialist
knowledge and support to customers on a pan-European basis.
2 Acal has operating companies in the UK, Netherlands, Belgium, Germany,
France, Italy, Scandinavia and the USA.
This information is provided by RNS
The company news service from the London Stock Exchange
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