Exertis UK has signed an agreement to sell its Exertis Supplies business to evo amid its wider right-sizing efforts, according to a statement sent to IT Channel Oxygen this morning.
The distribution giant staked a for-sale sign outside the Elland-based supplies specialist in December, after putting all circa 1,200 staff at its wider business at risk of redundancy at the start of the month
After we revealed last week that the duo were in advanced discussions, Exertis UK this morning confirmed that £500m-revenue rival evo has inked a deal to acquire Exertis Supplies.
In a statement sent to IT Channel Oxygen, an Exertis UK spokesperson said:
“As indicated in our statement a few days ago, we have now signed an agreement with evo, the UK and Ireland’s leading multi-channel supplier of business supplies and personal needs products, based in Normanton/West Yorkshire. As a result, all employees of Exertis Supplies who have not applied for voluntary redundancy will move to evo’s Vow subsidiary when the transaction completes, which we expect to happen within about two weeks. We are delighted for colleagues who will now be continuing their employment with evo/Vow.”
Who is Exertis Supplies?
Exertis’ involvement with Exertis Supplies can be traced back to 2011, when previous owner DCC acquired Advent Data.
Boasting a headcount approaching 200, it distributes business supplies ranging from ink cartridges, printers and computer accessories to hot drinks, furniture and face masks.
evo’s VOW Wholesale arm, which is a competitor of Exertis Supplies, has a large warehouse 30 miles down the road in Normanton.
News that Evo/VOW could be acquiring Exertis Supplies garnered mixed reaction among staff last week when news of a potential deal broke.
Internal comms shared with us throws into question how many staff Evo intends to keep on longer-term (with Evo said to be proposing to close the Elland warehouse and acquire only the stock and customer list).
IT Channel Oxygen has contacted Evo and VOW for comment, and will update accordingly (calls, emails and LinkedIn enquires over the last ten days have gone unreturned). An update has since been added (see bottom).
The news comes after Exertis UK on Monday said “fewer than 400” of its employees face involuntary redundancy following the conclusion of its consultation process.
Under the tutelage of new owner AURELIUS, it will move forward as a “specialist, independent distributor”, with sources telling us its specialist area of choosing is gaming.
Update
Just after this story was published, evo issued the following statement:
evo is now able to confirm that we have signed an agreement for our VOW business to acquire the trade and stock of Exertis Supplies from Exertis UK. We have acted here to enable a sensible outcome for all stakeholders. We are currently in consultation with the Exertis Supplies employees to try and secure their future employment wherever possible. We are also taking on Exertis Supplies’ stock, which should ensure suppliers receive a sensible settlement, and finally we are acquiring the trade, albeit we expect limited upside.
Commenting Andrew Gale, evo CEO:
“This is a sensible and pragmatic outcome. I would commend Exertis UK for their approach to this transaction, and I would like to thank Dan Taylor, evo Commercial Director, and Leanne Gregg, evo People Director for their outstanding work to enable this transaction to be completed. Steve Forde and Louis Dobson, the evo Stock team, worked tirelessly and we were advised by Walker Morris LLP and DLA Piper.”
Commenting Adrian Butler, VOW UK Managing Director:
“VOW’s immediate focus following the consultation period will be to work closely with our new colleagues and to ensure any stock transfer is completed in quick order to enable our customers to be serviced at the highest levels possible. VOW’s success is measured on how well the independent dealer channel performs, which has shown year after year how resilient and adaptable to change it is. I make no excuses for focusing on what’s important to our customers, base service and a set of commercial terms that help them thrive. If there are specific requirements that would help this, please do not hesitate to contact myself direct or one of the VOW team.”
Doug Woodburn is editor of IT Channel Oxygen
