Devonshire Corporate Finance (DCFL), part of Kingston Smith LLP Group advised the shareholders of Hammer Consolidated Holdings, a leading specialist distributor of server and storage solutions, on the sale of their business to DCC Technology, which trades as Exertis.
Based in Hampshire and employing 165 staff, Hammer distributes server and storage products for a broad range of leading suppliers including Dell, Intel, NetApp, Seagate and Western Digital. Hammer’s business is considered to be complementary to Exertis’ existing server and storage business, and will strengthen its supplier portfolio with the addition of almost 1,000 reseller customers.
Head of DCFL, Marc Fecher worked with Hammer for 11 years, from when the firm supported the company’s management buy-out. “He has supported us in this process by offering advice and assistance every step of the way. Because of our longstanding relationship they really understood our ambitions and delivered them,” Hammer MD, James Ward said.
According to Fecher, Exertis has made an excellent acquisition of a strong business. “I am delighted that I have been able to support the shareholders in achieving their objectives by leading on the sale process, including complex negotiations. Having forged a close relationship with James and his team 11 years ago when we assisted them to originally buy the business we were able to support their next step – successfully selling the business to a strategic buyer.”
Hammer Consolidated Holdings earned an operating profit of £6.3 million on revenue of £155 million. Exertis acquired the company on the condition it receives competition clearance from the European Commission, which should take place by the end of the year. The consideration will be paid entirely in cash and is structured as an initial payment at completion, followed by earn-out payments over three years based on Hammer’s future trading results.