Member Article

Shaw Gibbs helps Xeretec create Europe’s largest Xerox reseller

Shaw Gibbs Corporate Finance confirms the successful completion of the purchase of Bytes Document Solutions Limited by Xeretec Group Holdings Limited. The acquisition, in which Shaw Gibbs advised Xeretec, creates Xerox’s largest reseller in Western Europe, and takes Xeretec over the half-way mark in achieving its goal to become a £100m turnover enterprise.

Xeretec, an approved Xerox premier partner, is a leading supplier of office and digital printing equipment to business customers. It also supplies technical & maintenance services, software, consumables and finance solutions.

The acquisition of Bytes unites two highly successful Xerox suppliers and positions Xeretec as Xerox’s largest reseller in Western Europe in terms of scale, managed print services and large production equipment sales. The company’s £57m annual turnover will be driven by a combined team of 210 employees based in 11 offices across the UK and Ireland.

To complete the acquisition, Shaw Gibbs worked closely with the Xeretec board to perform financial due diligence, preparation of forecasts and drafting of the share purchase agreement. The firm also advised on the normalised working capital requirements of the transaction and reviewed the completion accounts on behalf of Xeretec.

Paul Wilson, Shaw Gibbs Corporate Finance Manager, comments:

“Xeretec has a specific and achievable growth target of reaching £100m turnover by 2019, and the acquisition of Bytes is an important milestone towards reaching this. It is incredibly rewarding to be part of the team which steered this project through to completion.”

Alyn Jenkins, Xeretec Group Finance Director adds:

“Shaw Gibbs has worked hard with us through all stages of the transaction to ensure that the deal completed on time. The team provided us with the necessary support and guidance on the detailed financial aspects of the acquisition and helped ensure a satisfactory conclusion. We look forward to working with Shaw Gibbs in the future.”

When the Bytes acquisition was announced, Xeretec Group Managing Director Steve Hawkins said:

“Acquiring Bytes Document Solutions is a significant move, helping to accelerate the pace at which Xeretec will achieve its goal of becoming a £100m turnover organisation by September 1, 2019. It has significant advantages for our customers, staff and of course Xerox, all of whom are set to enjoy the many benefits that will come from this best of breed approach. The values of Bytes Document Solutions’ are an ideal complement to Xeretec’s, making this is a win-win development for all, while starting a new chapter in the Xeretec success story.”

Xeretec appointed Shaw Gibbs as adviser to support the implementation of its ongoing growth strategy, of which the Bytes acquisition is a key component. Legal advice was provided by Sara Valentine of Osborne Clarke solicitors in Reading and bank funding was provided by HSBC.

For more information email bryan.pacey@shawgibbs.com.

This was posted in Bdaily's Members' News section by Shaw Gibbs .