The Channel logo

News

By | John Oates 17th October 2006 11:58

Fayrewood flogs UMD

Board approves...

Distie Fayrewood is selling UMD, part of its Niche Distribution division, to Italian firm Esprinet for €79m.

Fayrewood gets €53.5m in cash plus a €3m divi, which has already been paid. Esprinet is also taking on debts of €25.5m.

The board decided the difficulty of finding an acquisition in order to create a pan-European distie, and its market rating, made it unlikely that it could fund takeovers with shares. Fayrewood also blamed margin pressure from "specialist and large multi-nationals" for the decision to sell.

Looking forward, the board will focus on improving profitability in Interface Solutions and Banque Magnetique in France and "maximising value in its investment in Computerlinks AG".

Fayrewood is holding an extraordinary general meeting on 6 November to vote on the sale, which is unanimously supported by the board.

See the whole statement here. ®

alert Send corrections

Opinion

Lost

Jennifer Baker

European Commission still silent despite Ireland's plea

Neil McAllister

Claims that cloud will drive Oracle's future growth ring hollow

Features

AWS and Salesforce match up to Ellison's hardware
Five years on, what did Larry's lot do to Sun's partner network?
But here's why we're (probably) not staring at a crash
BlackBerry Passport
Network intelligence - our secret weapon