Growth brings end to EWG

The merger was the only option, said EWG.

The recently disbanded European Wholesale Group (EWG) has admitted a formal merger between its three members may have been the only way to keep the pan-European distribution group alive.

The EWG claimed to be Europe’s third largest distribution organisation behind Ingram Micro and Tech Data, with combined sales of ?6.1bn (£4.9bn).

However, members Esprinet, Also and Copaco have parted company after concluding each of them had achieved critical mass individually.

EWG chairman Alex Sozonoff told CRN his long-term vision was for the Italian, Swiss and Dutch trio to merge, but conceded each was too busy integrating acquisitions to seriously consider that as an option.

“If we had continued, we would have needed to do something different or dissolve it. We looked at whether we could add value for our vendors that would truly differentiate us, but all the options turned out to be too complex unless the companies merged,” he said.

Joe Hemani, chairman of UK broadliner Westcoast, which left EWG in 2003, said: “The EWG outlived its usefulness. There was a time when vendors supported a pan-European project, but this is no longer the case.”