Feeds

CHS bigwig launches European MBO bid

Update: But receivers still want to sell CHS UK as going concern

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

CHS Electronics today saw an MBO bid launched to buy 51 per cent of the EMEA business. The new EMEA operation would be led by Mark Keough, currently chief operating officer for CHS Electronics worldwide. Keough said he had the backing of manufacturers who "unanimously view this as a positive move". The CHS board is due to discuss the offer in the US today. Meanwhile, CHS Electronics has put subsidiary Metrologie UK up for sale to try and salvage its UK sales arm. The distributor announced Friday that CHS Electronics Plc, a subsidiary of CHS Electronics Holdings in the UK, had been placed in receivership by creditor Deutsche Financial Services (DFS). Today it revealed it was in talks to sell Metrologie UK and parent company CHS Electronics Holdings to raise cash to remove the subsidiary from receivership. DFS is calling in a £17 million debt on CHS. This comprises of a loan of £12 million owed by CHS Electronics Plc, and a further £5 million from a loan to CHS Germany guaranteed by the UK PLC. According to a statement by Peter Rigby, CHS' marketing director, both loans are secured by receivables of £20 million. Debts to other creditors were not disclosed. Rigby said the move from DFS was "unexpected and unannounced", but that the sale of the two UK operations was expected to be finalised within the next 48 hours. He maintained that Karma UK was a separate business, so it was not for sale and would remain unaffected by the action. Both Metrologie UK and Karma UK were open for business this morning. CHS Electronics Plc has 260 staff, with around 160 of these based in Brentford, and the remainder in Woking. Staff were this morning looking for alternate jobs within the industry, sources said. Metrologie has around 160 staff in the UK. Rigby, who said his own position remained undecided due to these recent events, commented: "It is quite likely, and I am hopeful, that a buyer will be interested in keeping the staff." Receivers BDO Stoy Hayward said it was still seeking to sell the business as an ongoing concern, in a company statement. Simon Michaels, a partner at BDO Stoy Hayward, said: "CHS Electronics are a significant player in this market and can offer a substantial client base to a potential buyer." A BDO Stoy Hayward representative was unable to confirm names of bidders, but said there had been a number of potential buyers over the weekend. She confirmed that an announcement was expected later today. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.