Electrocomponents Group has continued its progress under CEO Lindsley Ruth’s stewardship posting sparkling full year figures and snapping up IESA, a UK-based provider of value-added outsourcing services to industrial customers for £88 million.
The Group advanced on all fronts reporting a revenue increase of 12.8% to £1.75bn to which all five of its operating regions contributed double-digit growth. Profits soared 30% to £173m and like-for-like digital revenue rose 13.5%.
Commented Lindsley Ruth: “2018 has been a year of strong progress and significant growth in revenue, profitability and earnings. Our Performance Improvement Plan has delivered a major step forward in our quest to become first choice for customers, suppliers and employees but the opportunity for further growth and improvement still remains significant. Today we are launching a new phase of the improvement programme to ensure we fully capitalise on this exciting opportunity.”
The IESA deal cements Electrocomponents position in the maintenance, repair and operations (MRO) sector.
The company says it will enhance and accelerate its value-added services offering, giving it additional capabilities to service corporate customers who choose to outsource their MRO operations and other indirect purchases and inventory management.
IESA will be run as a separate business unit within Electrocomponents, with the existing IESA CEO, Glenn Timms, reporting to Lindsley Ruth. As part of Electrocomponents, IESA and its customers will benefit from the scale and international reach of the broader Group.
Said Ruth: “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.”
IESA provides outsourced procurement, inventory and stores management services, in addition to transactional processing services (P2P) to manufacturing and process industries.