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16 January 2012 | Angeline Albert
Australian purchasing company ADG Global Supply has bought UK business Winchester Procurement for more than £1.1 million to expand its worldwide capabilities.
Winchester Procurement provides purchasing services to clients predominently in Africa, the Middle East and Caribbean. One of the industries it serves is mining, which complements ADG Global Supply’s operations.
The acquisition will also extend ADG’s customer base, particularly in Africa, where Winchester makes around 60 per cent of its sales. It will increase ADG’s supplier reach by capitalising on the timezone location of UK-based staff who can easily communicate with clients in Africa and suppliers in Europe. It will also generate greater buying power for the Australian group.
The Hampshire-based company was established in 1990 by its founding owners including George Rodger who remains a director of the business as part of the acquisition agreement. Its nine staff, six of whom are procurement professionals, will continue to operate from the headquarters in Winchester.
The acquisition comes four months after ADG announced the establishment of its London based office with four staff members, and a distribution facility, as part of its expansion plans in Europe to service its growing client base in Africa.
John Mancini, managing director of ADG Global Supply, said: “ADG expects a significant uplift to our European operations in terms of a considerably expanded supplier base, new customer and revenue streams. The acquisition also increases our people and operational capability to quickly advance ADG’s plans to service clients across Africa. The Winchester brand will remain. As we integrate various back end functions into ADG’s operations we anticipate cost savings and margin improvements for both businesses.”
In 2011, Winchester Procurement generated revenue of £6.2 million. The purchase price of £1.12 million is based on its net tangible assets of £1.1 million as of 31 December 2011.