Accord to supply office2office growth
Article Date: Jun 03 2008A Norwich-based business supplies, managed services and supply chain specialist has added new clients to its business with the acquisition of an office products dealer. office2office could pay up to £6 million for Accord Office Supplies depending on performance.
On completion £5 million was paid in cash from the acquirer’s existing resources, with up to £1 million due if Accord meets specific targets by the end of the year.
Under the terms of the deal, office2office assumes up to £1.1 million of debt. This includes a performance-related deferred payment for File-It, an office products supplier that Accord bought in January.
The acquisition is consistent with office2office’s aim to broaden its customer base in the mid-market. The acquired company will continue to be led by its existing team, headed by managing director Richard Whittal.
office2office chief executive Simon Moate said Whittal’s team is important to the company going forward as it has a track record of building sustained growth at the business.
Swindon-based Accord was founded in 1989 to supply office equipment and furniture. In its audited accounts for the year to October 2007, the company reported a turnover of £8.4 million that produced a profit before interest and tax of £123,000.
