Midwich has acquired its way into Canada as it revealed it has six other M&A opportunities in its pipeline.
The LSE-listed audio visual distributor is paying up to £26.7m for Canadian outfit SFM, which has an estimated 20-25% share of Canadian pro audio market.
The deal comes three years after Midwich entered the US market with its £35.7m acquisition of Starin.
Founded in 1978, Montreal-based SFM has 146 employees, 1,500 customers and fiscal 2022 revenues of CA$94.7m.
Midwich announced it has undergone a £50m fundraise to bankroll the acquisition and to execute its near-term acquisition pipeline.
“This includes six opportunities which are currently in due diligence and fully align with the Company’s stated growth strategy,” Midwich revealed.
In 2022, some 59% of Norfolk-based Midwich’s £1.2bn revenues were drawn from outside of the UK & Ireland.
“The Canadian AV market represents a significant opportunity for the group, and so it was important that we found a high quality business to partner with,” Midwich CEO Stephen Fenby said.
“SFM is such a business, with high customer service levels and market-leading technical support. The time we have spent with the SFM management gives us great confidence that we can work together to build an even stronger business serving the Canadian market.”