UK storage distributor CMS Peripherals has denied that it is to be the subject of a management buyout, despite reports to the contrary and mounting industry speculation.
A source familiar with CMS confirmed that a buyout is expected to go ahead in the coming weeks. But chairman Frank Salmon said that he was unaware of any staff interest in the company. "I am quite flattered that my staff are said to be interested in the business, but this is the first I have heard of it," he said.
Salmon admitted that he would be interested in floating or selling CMS, which was founded in 1988, "at the right time". However, he stressed that business was very strong and he was satisfied with his position in the firm.
An industry source, who asked not to be named, said: "Frank [Salmon] has never made a secret of the fact that when the time is right he will sell the company. Right now, CMS is trying to generate cash. It is moving Hewlett Packard and Iomega stock very cheaply. My customers say it will be subject to a buyout."
"I am not surprised," the source added. "CMS is a very specialised company, and it is good at what it does."
The buyout speculation comes just five months after CMS reorganised its operations into two groups in an attempt to expand its range of channel services.
The enterprise storage group was created to focus on the high-end marketplace, offering partners consultancy, specification, design and installation services. The commodity storage group focuses on commodity products.
Brin Sage, sales director at rival storage distributor InTechnology, said he could understand management interest within the firm. "The storage market is very buoyant right now and turnover is predicted to grow at around 20 per cent. The business can obviously make a profit and it is an attractive proposition."
First published in Computer Reseller News
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