IESA agrees to be acquired by Electrocomponents plc

London, UK, 24 May 2018 – Electrocomponents plc (LSE: ECM), the global distributor for engineers, has announced that it has reached an agreement to acquire IESA, a UK-based provider of value-added outsourcing services to industrial customers, for a consideration of £88 million. The acquisition of IESA will enhance and accelerate the Electrocomponents Group’s value-added services offering, giving it additional capabilities to service corporate customers who choose to outsource their maintenance, repair and operations (MRO) and other indirect purchases and inventory management.

IESA provides outsourced procurement, inventory and stores management services, in addition to transactional processing services (P2P) to manufacturing and process industries. Its fully integrated indirect supply and comprehensive stores solutions compliment the Electrocomponents Group’s existing product and value-added service capabilities, giving it a full-service end-to-end solution for customers. IESA’s services allow clients to improve their efficiency and consolidate their indirect procurement vendor base via a cloud-enabled proprietary marketplace solution, MyMRO.

IESA will be run as a separate business unit within Electrocomponents, with the existing IESA CEO, Glenn Timms, reporting to the CEO of the Electrocomponents Group, Lindsley Ruth. As part of Electrocomponents, IESA and its clients will benefit from the scale and international reach of the broader Group. In addition, the Group’s relationships with international suppliers will enable IESA to enhance its offering to its clients, whilst at the same time accelerating its international presence and digital capabilities.

Glenn Timms, CEO of IESA, said: “We are excited to become part of the Electrocomponents Group and this represents the start of a third chapter for our organisation. Since launching as a digital disruptor and family business in 2002 and having undertaken a Management buy out in 2012, we are proud to have become a multi-national multi hundred million pound business operating in six countries. This is testament to both our outstanding employees hard work and the faith and trust our clients and vendor partners have placed in us, together with the support and encouragement of our private equity investor Gresham who have been an invaluable partner over the last six years and we publicly express our gratitude accordingly.

As a proud new member of the Electrocomponents family we will be retaining our existing leadership team and will continue to operate as an independent unit, which is crucial to our business model. We will have significant opportunities to leverage the Group’s global infrastructure, resources and digital capability to drive faster growth and benefits for our clients, vendors and employees and are looking forward to the next phase of our development”

Lindsley Ruth, CEO of Electrocomponents, stated: “The acquisition of IESA will improve our value-added services proposition, enhancing our offer for customers. We believe the combined digital capability of IESA and Electrocomponents is a market differentiator and will greatly enhance the experience we can offer our customers and suppliers with a much wider range of ecommerce-led solutions. We intend to continue to run IESA as a separate business unit within the Group, allowing it to retain its supplier independence, which customer’s value. We are thrilled to welcome IESA to the Electrocomponents Group.”

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About IESA
is based in the Birchwood Science Park near Manchester in the UK and employs approximately 500 people, 350 of whom work on site at client’s facilities. IESA has approximately 27,000 suppliers and its client base is primarily large national and multi-national manufacturing, assembly and process manufacturing businesses in Germany, Ireland, Singapore, Slovakia, Sweden and the UK, its original and largest market. IESA’s proprietary platform, MyMRO, is integrated into clients’ own systems, providing them with the opportunity for cost savings and inventory reduction. IESA also drives continuous improvement leading to inventory optimisation benefits.

About Electrocomponents plc
plc is the global distributor for engineers. With operations in 32 countries, we offer more than 500,000 products through the internet, catalogues and at trade counters to over one million customers, shipping over 50,000 parcels a day. Our products, sourced from 2,500 leading suppliers, include electronic components, electrical, automation and control, and test and measurement equipment, and engineering tools and consumables.

For more information, please contact IESA:

Simon Hilton
Business Development Director
Tel: +44 (0)7779 286742
Email: simon.hilton@iesa.com

Visit the website at www.iesa.com

For more information, please contact Electrocomponents plc:

Editorial contact:
Lynn Webster-Scott
Head of Corporate PR
Tel: +44 (0)20 7239 8400
Email: lynn.webster-scott@electrocomponents.com

testVisit the website at www.electrocomponents.com

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