Leading distributors Westcoast and ALSO Group have announced a merger agreement and will operate under the ALSO name. The merger is awaiting regulatory approval.
Westcoast chairman Joe Hemani will become a major shareholder in ALSO, mainly owned by the Düsseldorf-based Droege Group.
The merger includes Westcoast’s UK, Ireland, and France businesses, while the German and Dutch operations will stay under Hemani’s control.
This merger follows Westcoast’s 2022 acquisition of telecommunications distributor Komsa, which is expected to be completed by 2025. Neither Westcoast nor Komsa has provided any updates on this integration since the announcement.
Recent financial reports show Komsa’s output dropped nearly ten per cent to £924 million for the 2022/23 financial year, while ALSO reported a seven per cent decrease in sales to £4.28 billion in the first half of 2024.
Westcoast, founded in 1983 and employing 1,000 people, reported sales of £4.2 billion in 2023.
The merger, led by Hemani and Gustavo Möller-Hergt (pictured, left), chairman of the ALSO board of directors, is seen as a key milestone for ALSO, which aims for sustainable profitable growth.
ALSO has implemented a “transparent integration” programme, which has been successful in nearly 30 acquisitions over the past 12 years.
Both companies have a history of working together in the cloud business. According to Möller-Hergt, this merger will boost their capabilities in IT solutions, infrastructure, and digital platforms, including cloud, AI, IoT, and cybersecurity.
Following the announcement, ALSO’s share price on the Swiss stock exchange rose by over five per cent to £223.08.
