Gores Technology Group Announces the Acquisition of the European Operations of Micro Warehouse
June 7, 2004
Transaction Establishes Gores as a Significant Player in the IT Products Market in France
LOS ANGELES, CA - JUNE 7, 2004 - Gores Technology Group, LLC ("Gores"), a leading private investment firm, announced today that, through an affiliate, it has acquired certain of the European operations of Micro Warehouse ("Micro Warehouse Europe" or the "Company").
Micro Warehouse Europe is a direct reseller of IT products, operating through four distinct businesses located in the United Kingdom, France, Germany and the Netherlands. The Company markets more than 36,000 brand name products (including computers, hardware, software, peripherals and networking equipment) from leading vendors such as Hewlett Packard, Compaq, Apple, IBM, Toshiba, Microsoft, Adobe, Epson, Cisco and Sony. The company's customers include individuals, corporations, educational institutions and governments. Micro Warehouse Europe markets its products through catalogs and e-commerce websites in addition to a direct sales force of account managers and an outbound telemarketing sales force.
Gores successfully participated in the auction process for Micro Warehouse Europe in partnership with Dixons Group plc ("Dixons"), a strategic U.K- based player in the sector. As part of the acquisition, Gores executed the simultaneous sale of the U.K. operations to Dixons in addition to the sale of the German and Netherlands operations to current management. Gores will therefore retain the French business ("Micro Warehouse France"), which currently operates under the trade name Inmac.
Micro Warehouse France is currently the fourth largest retailer of IT products in France with 2003 revenues equal to €210 million. It operates exclusively in the business-to-business sector, selling mainly to government and corporate customers. The business maintains a unique market position, serving the complete spectrum of customers ranging from small-to-medium size enterprises to large corporate customers and government entities. The business provides a standard offering to its smaller customers, but has the in-house capabilities to offer a tailored solution with large-scale purchasing discounts to its larger customers.
"This acquisition establishes Gores as a significant player in the IT products market in France", said James Bailey, Gores Technology Group President of Operations. "Not only will we continue to actively operate in the business to business sector, Gores plans to aggressively expand the operation into the burgeoning small to mid-sized enterprise market."
"We are excited to become a new member of the Gores family of companies," remarked Guy Sakelario, President Directeur Generale of Micro Warehouse France. "We believe the business will now be able to exploit its growth opportunities with the support of Gores Technology Group."
About Gores Technology Group, LLC
Founded in 1987, Gores Technology Group, LLC ("Gores") is a private investment firm focused on the technology, telecommunications, and business services sectors. The firm combines the seasoned M&A team of a traditional financial buyer with the operational expertise and detailed due diligence capabilities of a strategic buyer. Gores has a long standing record of creating sustainable value in its portfolio companies by focusing on customers and employees, supporting management with operational expertise and providing the capital required for growth. Headquartered in Los Angeles, California, Gores maintains offices in Boulder, Colorado; New York; Zurich and London.
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