Electrocomponents agrees to acquire IESA to extend value-added services for corporate customers

Electrocomponents agrees to acquire IESA to extend value-added services for corporate customers |

London, UK, 24 May 2018 – Electrocomponents plc (LSE: ECM) 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 complement 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 customers 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 customers 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 customers, whilst at the same time accelerating its international presence and digital capabilities.

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 ISEA as a separate business unit within the Group, allowing it to retain its supplier independence, which customers value. We are thrilled to welcome IESA to the Electrocomponents Group.”

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. We launched as a digital disruptor and family business in 2002 and undertook a management buyout in 2012. Our success is testament to our outstanding employees, their hard work and the faith and trust our clients and vendor partners have placed in us, together with the support and encouragement of our investors.

“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.”