PrintIT Reseller - issue 64

01732 759725 ACQUISITIONS 34 Backed by Horizon Capital, DMC Canotec has acquired United Carlton. With this acquisition – the company’s fifth in six years – DMC has doubled in size DMC Canotec acquires United Carlton “The merger will bring little change to the way in which we operate,” Colby said, adding: “From a client perspective, it will be the same people and contacts within the organisation delivering the same impeccable service.” Acquisition strategy “We agreed a clear acquisition strategy with our investors, to buy first- class companies with long-standing reputations for quality service. We’ve started as we mean to go on,” Davey commented. “United Carlton and DMC are really well aligned in terms of service delivery and customer service, which makes it a perfect fit.” While Davey assumes overall control of the group, Colby will be responsible for the northern arm along with identifying prospects for acquisition. “United Carlton has a great name in the north and is a really well established brand. Warren has done a superb job and it makes good sense for him to continue doing what he does best,” Davey said. Growth in the Midlands Both Davey and Colby agree that the one sure fast way to grow is through acquisition and confirmed that further acquisitions are firmly on the cards. Davey said: “In order to quadruple the size of the business, we’re going to need to purchase good businesses.” The two businesses combined make up a powerful force, however Colby says that whilst they are looking to acquire everywhere, a key focus will be on strengthening the group’s footprint in the Midlands. “At United Carlton, we realised the only way to grow is to expand our reach nationwide – which is why the acquisition made sense. By coming together with DMC, we now have a really strong presence in both the north of England and in the south/ south west. Our goal now is to plug the gap in coverage with the acquisition of Midlands-based dealerships, so that we have true nationwide coverage.” Davey added: “We are talking to around a dozen firms at the moment. There are far more on the market, but the most important thing for Warren and I is to ensure we do business with companies that fit well with our culture. Our plans are to acquire further like- minded businesses in the UK with a view to providing a true nationwide coverage for existing and new opportunities.” Multi-brand offer One of the biggest changes as a result of the merger will be a shift from a single-vendor to multi-vendor offer. DMC Canotec has always been a single-line Canon reseller while United Carlton is a long-standing top-performing dealer for both Sharp and Toshiba. The merger will see the group offer customers all three brands. Davey points out that Canon remains a very important partner to the group. “United works closely with Sharp and Toshiba, which means that we now have some great additional products available to us across the group. The only exception to that will be within the Bristol-based Canon Business Centre. We will continue to support Canon’s growth in that market and won’t supply other lines in that region,” he concluded. www.dmcplc.co.uk www.united-carlton.co.uk Last year, Horizon Capital invested in DMC Canotec, charging CEO Simon Davey with the task of quadrupling the business in five years. “In today’s market where consolidation continues apace, the best way to realise our growth strategy is through acquisition,” Davey said, adding: “The smart way is to buy big – United Carlton is a successful thriving business, and that was one of the reasons that attracted us. This one deal has effectively doubled the size of the business.” Following earlier acquisitions of Canotec, BCL, HP Technology and First Office, DMC has an established position in the south of England, with offices in London, the south east, south west and the south coast. The amalgamation with United Carlton will provide the group with a strong presence in the north of the UK. United Carlton has built strong relationships with clients from its three offices in Gateshead, York and Warrington, which will remain open. Together, the combined business will employ over 250 staff and support more than 4,500 customers from seven locations. United Carlton was established in 1996, after five colleagues spotted an opportunity to go it alone when the company they all worked for was acquired by IKON, (which was later integrated into Ricoh’s business). Managing Director, Warren Colby said that the acquisition came at exactly the right time. “Of the five founding partners, three were ready to exit the business, but myself and Sales Director Mark Bryce, wanted to remain.” Under the terms of the agreement, Colby and Bryce will continue to be responsible for growing the northern regions both organically and through further acquisitions. One of the biggest changes as a result of the merger will be a shift from a single-vendor to multi- vendor offer (l-r) Simon Davey, Warren Colby, Mark Bryce and Group Sales Director Andy Young