ICP purchase halts Euro stalemate at Datrontech

Distribution Bulk buying continues as European expansion comes off the back burner.

UK components distributor Datrontech Group has acquired Dutch outfithe back burner. International Computer Products (ICP) for #7.9 million, as the company moves ahead with the European expansion strategy it put on hold earlier this year.

Datrontech will pay #2.3 million up-front on completion of the deal, followed by three yearly instalments of #1.9 million - a total of #5.7 million. The first deferred payment will be made one year after completion of the sale.

ICP is Datrontech's eleventh acquisition in the past 30 months. The distributor was preparing for a Dutch buyout as far back as July, but progress was halted when it was forced to issue a profit warning for the interim period to 31 July. It had been looking at potential buys in Scandinavia, but has satisfied its ambition as ICP is also established in this region.

ICP, a computer components and peripherals distributor, sells primarily into the Netherlands, UK and Belgium, with operations in Denmark and Germany. It has one UK sales unit - in Wokingham, Berkshire - plus a branch in Belgium and one in Taiwan.

The company has been approached by a number of unnamed US distributors, but managing director Ben Jan Wilbrink said he wanted it to be part of a European operation.

Mark Mulford, Datrontech CEO, said: 'Holland is a prime location for servicing mainland Europe, and there are many growth opportunities from co-operative activity between ICP and Datrontech.'

ICP was established in 1987 and distributes chips, PCs, monitors, hard disk and tape drives, as well as networking products. Its suppliers include AMD, Cyrix, Intel, Acer, Fujitsu, Hewlett Packard and Western Digital.

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