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Midwich goes south with Earpro

British AV broadliner Midwich has entered into a binding agreement to acquire a majority stake in Spanish AV VAD Earpro. The acquisition values the equity of Earpro at approximately €11m, including a net cash balance of approximately €3.2m. Managing Director Miguel Mezquita retains a stake in the business and will continue to lead the business as part of the Midwich Group. The Earpro business, headquartered in Barcelona enables the entry of the Midwich Group into the Spanish and Portuguese markets. The acquisition is further delivery of the Group's strategy, stated at IPO to grow operations through a combination of organic development and selective acquisitions.

Stephen Fenby, Managing Director Midwich Group, commented: "I am delighted to welcome Miguel, and the rest of the Earpro team to the Midwich Group. Spain and Portugal are markets we've identified as significant to the Group's international growth ambitions. The addition of this territory to the Group's portfolio increases Midwich's geographical coverage, with the Group operating in territories which account for approximately 60% of the European audio visual market. We will look to continue strengthening the Company's position in the professional audio market, and support the business to build its lighting and video technology divisions, namely in Italy, the Netherlands, Poland and Switzerland." Earpro's heritage in the audio market has enabled the business to develop its sales in complementary video and lighting technologies. As a market leader in professional audio distribution, the business has a strong platform to develop video and lighting sales through its existing customer base.

Miguel Mezquita, Managing Director Earpro, commented: "From the outset of our conversations with the Midwich Group, the cultural and operational synergies of our two businesses were evident. This new partnership will enable us to continue our business's development in the professional audio, video and lighting technology markets with the support and backing of an experienced international audio visual specialist." Specialist services provided by the Company include: system design, pre-installation product configuration, pre and post sale technical support, product demonstrations, and product repairs. Through its portfolio of leading vendors, Earpro will continue to provide the complete audio solution to the professional market. This includes sales of product technologies in microphones, mixers, amplifiers, sound systems, public address systems, ear monitoring systems and digital system processors (DSP), along with their lighting and video technology ranges.

Tom Sumner, Midwich European Director, commented: "The Midwich Group has experience of international acquisition in Europe (in France and Germany) and Australasia where our approach has been to address these markets through strong local teams. We will continue this with Earpro, providing support where we can. We are excited to work with the Earpro team, and will look to maximise the business synergies across the Group's organisations. Our primary focus will remain on continuing to enhance the support and service we provide customers and vendor partners."