"BFi is from the same stable as Acal," says Steve Carr (pictured), managing director and European sales director at Acal Technology. "It has a high degree of value-added services, and brings a focus on photonics, imaging and magentic sensors, strengthening Acal's presence in these market sectors."
The deal also gives Acal a bigger footprint in the European market place. "It expands the business in France and Germany, markets where we want to have a big presence," Carr adds. He also believes the agreement forges a strong physical technical presence.
"Some FAEs these days I'd describe as spec sheet pushers," he argues. "We employ people who understand the technology in its entirety. Semiconductors, photonics, RF are the areas where specialisation is needed. We make sure we understand the customer requirements."
Acal's strategy embraces new technology he remarked. "We are at the front end of bringing emerging technologies into the supply chain," says Carr.
He describes the deal as "a stake in the ground to invest in Acal's future." Carr reported approval from the suppliers had spoken to this morning. "The response has been very positive."
As reported earlier this morning Acal has acquired BFi Optilas for 10m Euro cash and Two million Acal ordinary shares which will be issued on completion of the deal. Acal will now seek shareholder approval, and also needs French government approval of the acquisition. Carr hopes these issues can be wrapped up in the next six weeks, while acknowledging Christmas may delay things to the New Year.
Acal sales in its last financial year were £165.4m, with a profit of £0.5m. BFi which is privately owned had sales of 105m Euro last year.
BFi operates a similar structure to Acal with distinct business units for specific technologies. The five units are specialist components, communications, photonics, imaging and others which includes test and measurement and computer security products.
And if test and measurement doesn't look a fit with Acal, think again. Carr says the company sells test and measurement products in Italy.
The deal looks a good one for both parties. With little chance of competing against the sector heavy-hitters and the obvious buyers looking sated right now, consolidation and a chance to create a bigger, highly specialised distributor looks the right, though tough, route to take. The two companies will want to build on local reputations, while bringing the benefits of a pan-European operation to bear. It is not a shotgun marriage.The two parties have been talking for over a year before consummation.
Comments