Acal's spare parts arm goes solo in MBO

Printing and PC spare parts distributor to be renamed as EAF following split from parent

Distributor Acal has agreed to sell its UK spare parts distribution and outsourcing division to its management team in order to "focus resources on enhancing the value of its core electronics division."

The Warrington-based parts division is currently contained within the Acal Supply Chain (ASC) business and generated revenue of £23m in its financial year ending 31 March, but made a loss before tax of £500,000.

The parts division will be rebranded as EAF Supply Chain on completion of the management buyout (MBO), which is expected on 3 January, subject to shareholder approval. The business unit was previously named EAF before Acal acquired it in 1994.

Soon-to-be EAF, which supplies new and refurbished computer and printing parts to IT maintenance firms, faced "difficult trading conditions" according to Acal, which further stated that EAF "is loss making, capital intensive and non-core to the group."

The current management team of the UK parts division, which consists of managing director Robert Hall, finance director Mark Hesketh and sales director Jonathan King, will run EAF Supply Chain following its separation from Acal.

Despite this, Robert Hall, managing director of ASC, said that EAF Supply Chain will "be profitable from commencement and has the resources to invest in anticipated growth". He added that the split will enable EAF Supply chain to extend its services, provide better support and increase investment.

The business split was amicable, according to Acal's chief executive Nick Jefferies, who said it will allow for more focus and investment on its electronics division.

"The proposed disposal of the UK Parts business from our Supply Chain division is a further step in our stated strategy of focusing on the specialist electronics market and provides additional resources to invest in this area. We wish the ASC management team every success in the future," he added.

Acal competitor and supplier Chiltern IT's managing director Tony Price said he wishes EAF well, but sees an opportunity for his business following the split.

He said: "I believe the guys leading this MBO have been in this market for some time, so I am sure they know what they are doing. Whilst I wish them all the best, I think this will no doubt create some confusion within their customer base, so I see this as another opportunity for Chiltern IT."