Beta Distribution has withdrawn from talks to buy rival Entatech after some last minute due diligence.
Beta MD Steve Soper said information obtained during due diligence process killed off the transaction.
Beta confirmed that it had been in “detailed talks” with Entatech and its advisors about acquiring certain assets of the company.
However while the talks went on for a while, it appears some information obtained during detailed due diligence meant Beta was unable to continue.
Industry rumours were claiming that Beta was closing in on inking a pre-pack deal to buy Entatech, which has been widely marketing itself in recent weeks because it needed a larger trade backer to deal with its credit problems.
It managed to get a reprieve last March when new management there agreed a deal with HMRC over its legacy VAT issues. But then the outfit lost its key Fujitsu contract last summer and it was forced to put itself up for sale.
The search intensified at the end of April when RBS started to take control of the company.
Soper said that Beta would still deviate from its glorious five-year plan if the right opportunity came along.
Entatech fitted the bill, with experienced people, important supplier relationships and a well-established customer base but in the end, it wasn’t a starter.
