Tradequip acquired by Borum Importers

WHOLESALE DISTRIBUTION - INDUSTRIAL TOOLS

THE DIVESTMENT CAMPAIGN

Our Client – The Vendor

Tradequip is a leading Australian importer and wholesale distributor of industrial tools and equipment for the professional trades markets within the automotive and industrial tool industry. Established in 2001, the Business specialises in the development, sourcing, importing and distribution of high quality equipment designed to service the needs of all industries and priced to offer exceptional value. It represents a leading brand in its market sector and boasts a customer-base spanning all of Australia. Over its 14 years of operation, Tradequip has built strong partnerships with its suppliers as well as its sales channel, which comprises: national retailers, niche and speciality resellers, large enterprises and buyer groups.

In late 2014 the Directors sought to exit the Business by way of sale to a third party in order to pursue retirement plans. Furthermore, given the fractured and highly competitive nature of the industry, they believed the Business would greatly benefit from being part of a larger distribution business. As specialists in mid-market business sales, Johnsons Corporate was appointed to assist with a national divestment campaign.

The Business Sales Strategy

Tradequip represented an attractive opportunity for a strategic acquirer seeking a bolt-on opportunity for horizontal or vertical integration in the same industry space. In addition to its long-standing relationships with both suppliers and customers, this was a brand recognised industry-wide for its broad product range and known for its effective catalogue marketing campaigns. The acquisition also offered a new owner scope for future revenue growth through: the expansion of the online sales channel, the addition of direct sales reps, and/or the continued introduction of new product segments.

Johnsons Corporate’s custom research & marketing focused solely on Industrial & Automotive Product / Equipment Distributors and Manufacturers in the Australian marketplace. Johnsons ran a proactive direct marketing campaign that uncovered 26 qualified, interested parties. Further vetting and negotiations resulted in the selection of a preferred buyer as well as a backup buyer, with Offer and Acceptance secured within 9 weeks of going to market.

(Read more about how using a Specialised Mid-Market Business Broker Approach to selling your business could get you a better outcome – just like our client).

The Related Trade Buyer

The purchaser, Borum Importers, a growing Perth-based industrial equipment distributor, seeking to grow its distribution platform via acquisition, came from Johnsons’ primary market research of industrial product suppliers. The purchase will enable the business to expand from Western Australia into the Victorian and broader East Coast markets.

What Our Client Had to Say

"Following a review of the business and the market sector, a marketing campaign was created [by Johnsons Corporate], presenting the business purely as a “bolt-on” opportunity to existing equipment distributors. This focused approach resulted in a number of meaningful discussions with interested parties within our sector. The end result was a great match with the final purchaser."

Frank He, Director - Trade Quip

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