Action hits UK acquisition trail in bid to build empire

Mail-order company Action Computer Supplies is scouting around rival firms as it prepares to grow its business by acquiring a UK reseller.

But Action?s move to make an acquisition has prompted speculation that the company is poised to make a bid for P&P, following an announcement from its parent Skillsgroup that it is looking to sell off the desktop business (PC Dealer, 18 June).

The purchase would add about #215 million to Action?s turnover, or #150 million if Action declined to take on P&P?s Belgian and Scandinavian interests.

One City analyst said the acquisition by the mail-order firm would make sense. ?It?s not a ridiculous proposition by any means. It would take Action into the corporate arena and away from being just a mail-order company.?

One reseller said: ?It makes sense because P&P has an amazing customer base and no one doubts the strength of its corporate accounts.?

Another source commented: ?Action needs to continue to deliver growth and generate shareholder revenue ? organic growth may not deliver the performance required by shareholders. P&P has a strong logistics background and call centre excellence.?

Computacenter CEO Mike Norris said: ?One plus one usually equals one-and-a-half in this industry. Mergers and acquisitions tend to act as a distraction from the core business, so the more the merrier in my opinion.?

Duncan Wilkes, Action sales and marketing director, claimed that no talks were taking place with P&P. ?I?m not completely ruling this out,? he said. ?But then I?m not completely ruling out a takeover of Computacenter either.?