Westcoast expects foreign buyer

Networking distributor Westcoast may be sold off to a foreign company, the firm revealed this week, with managing director Paul Cook admitting that it would be in the best interests of the company to sell if the right buyer came forward.

Networking distributor Westcoast may be sold off to a foreign company, the firm revealed this week, with managing director Paul Cook admitting that it would be in the best interests of the company to sell if the right buyer came forward.

"Westcoast is a good proposition, but it is not simply a case of money," he said. "We are not looking to tout the business, but if a suitable offer comes in and there is the right synergy between both parties, I think it would be beneficial to the business in the long term."

Cook said that, although he was not currently discussing a sale with any interested parties, he expected a buyer to come from abroad to use the acquisition as a way of securing a foothold in the UK networking distribution market.

"It is not easy to break into the UK market without acquisition," he explained. "Magirus had to buy units from Computer 2000 (C2000) and Ingram last year, and I think that foreign businesses will be interested in our position."

Julien Klein, managing director at C2000, said he believed Westcoast's availability was financially motivated.

"Westcoast relies too much on one vendor [Hewlett Packard (HP)]," Klein claimed. "HP is going through a hard time, and Westcoast is suffering as a result. HP is also an important vendor for C2000, but our flexible business model means that our future does not depend on the company."

HP currently supplies 65 per cent of Westcoast's business, but Cook rejected Klein's claims. "It is true that Westcoast does a lot of business with HP," Cook said. "But it has not had a negative effect on the business. Our results in 2001 will be up on last year. They will surprise a lot of people."