Tech Data eyes UK after German buy

A UK distributor is next on the US giant?s hit list as it continues its European expansion programme

Tech Data is gearing up to acquire a UK distributor to further its European expansion, following the US distribution giant?s purchase of German wholesaler Macrotron.

The distributor concluded its purchase of Macrotron after acquiring a 75 per cent stake in the company, despite experiencing a recent breakdown in talks. Ingram Micro is also believed to have been in the running to buy Macrotron.

Jeff Howells, chief financial officer of Tech Data, admitted the company will continue its policy of acquisition in large European IT markets after the Macrotron buy.

?We will make appropriate acquisitions but there is no rush there,? he said. ?We?ve looked at some nice companies and groups [in the UK], but we have enough to do for the time being.?

Howells claimed no acquisitions were pending, but indicated that Tech Data had previously held discussions with potential partners. ?The most efficient way in any large country is to acquire,? he said.

Tech Data has a presence in France following its purchase of Softmart, France?s biggest distributor, in 1994.

Macrotron is the fourth biggest distributor in Germany, after Computer 2000, CHS Electronics and Actebis. It reported a turnover of $905 million and profit of $5.3 million in the year to 30 September 1996.

Tech Data CEO Steven Raymund said: ?We are excited about the opportunity to expand our reach in the European market. This reflects the continuation of our strategy to build a pan-European presence.? The terms of the deal were not disclosed.

For the year to 31 January, Tech Data made a profit of $57 million on turnover of $1.31 billion. Howells said Tech Data had $625 million in revolving credit facilities ?to provide the necessary capital to finance our planned growth?.