- Electrocomponents has announced that it has entered into an agreement to acquire IESA, a UK provider of value-added outsourcing services to industry.
- The transaction amounted to £88 million, or approximately €100 million.
- The acquisition of IESA will enable the Electrocomponents Group to strengthen its value-added services offering.
Electrocomponents, distributor of electronic and industrial components and equipment via its RS and Allied brands, will thus have new services at its disposal for companies that opt to outsource their maintenance, repair and operation (MRO) as well as their indirect purchasing processes and inventory management.
IESA offers outsourcing services for procurement, inventory and stores management, as well as transaction processing (P2P) services for the process and manufacturing industries. The British company relies on MyMRO, its proprietary marketplace based on a Cloud platform.
IESA will operate as an independent commercial entity within the Electrocomponents Group. Glenn Timms, current CEO of IESA, will report to Lindsley Ruth, CEO of Electrocomponents Group. By joining Electrocompoents, IESA, which was previously present in the United Kingdom, Ireland and Germany, will benefit from the international scope of the group, which has a strong presence in America, Asia and Europe.
Headquartered in Warrington (near Manchester), IESA employs 500 people and had sales of £232m (€265m) in its 2018 fiscal year ending March.
Headquartered in London, Electrocomponents employs 5800 people worldwide. The British group, through its commercial brands RS Components and Allied Electronics & Automation, operates in 32 countries. Its turnover for its last financial year ended 31 March 2018 was GBP 1,71 billion (EUR 1,95 billion).
According to Lindsley Ruth, CEO of Electrocomponents: “The acquisition of IESA will enhance our value-added service offering. We are convinced that the combination of IESA’s digital capabilities with those of Electrocomponents is a differentiating element on the market. We intend to continue to manage IESA as a separate business entity. This will enable it to maintain the independence that customers value as a supplier.”
Glenn Timms, CEO of IESA, said: “This integration into Electrocomponents is the beginning of the third chapter in our company’s life. We started in 2002 as a digital family business before the company was taken over by its management in 2012. Our management team will remain in place and continue to operate as an independent entity. This is crucial for our business model. We will be able to leverage the global infrastructure, resources and digital capabilities of the Electrocomponents Group.