Specialist audio visual distributor Midwich is expanding into the US with the acquisition of Starin Marketing, Inc., an Indiana-based specialist value-add AV distributor.
Midwich Group is funding the £35.7m acquisition through debt facilities, which it plans to repay through a £39.7 million share placing, the proceeds of which will also be used to make further acquisitions this year.
Stephen Fenby, Managing Director of Midwich Group plc, said: “The acquisition of Starin Marketing, Inc. is a significant day in Midwich Group’s history, marking our entry into North America, the largest AV market in the world. Starin’s exposure to, and relationships in, the growing unified communications segment will be greatly beneficial to Midwich as it seeks to increase revenues in this fast growing AV sub-sector across its global network.”
Starin is active in three main areas: value add Pro AV distribution; fulfilment for Music Tribe, manufacturer of the Midas, Tannoy, Lab Gruppen, Lake and Behringer audio brands; and the fitting out of Zoom Rooms optimised for Zoom Video Communications.
In the year to 31 December 2019, Midwich Group completed the acquisitions of MobilePro (Switzerland), Prase (Italy), AV Partner (Norway) and Entertainment Equipment Supplies (Spain), Combined with organic revenue growth of 6%, these additions to the Midwich network helped increase Group revenues by 19% to £685 million.