Stax buys Scottish wholesaler
STAX Trade Centres – an independent wholesaler of building products based in Salford – has bought Edinburgh-based competitor DF Wishart & Co Ltd for an undisclosed sum.
Stax said that the acquisition would add turnover of between £6m-£7m a year as well as boosting its presence in Scotland and the North East. In the year to August 31, 2010, Stax Trade Centres made a pre-tax profit of £2.1m on sales of £92.4m.
DF Wishart’s customers are largely independent retailers to whom it delivers goods directly. Stax said that the deal would would strengthen its delivered business and the recent growth of its garden sector offer. It will also allow Stax to sell its own Supa brand range of products within Wishart stores.
Stax chairman Eddie Brady said: “Wishart are a ‘perfect fit’ with the Stax Group. We have been looking at how we could support Scottish retailers for a number of years.
“Wishart gives us that long sought-after presence in Scotland and provides a platform for the expansion of Supa in that area. It will enable us to strengthens our product offer especially in gardening, and gives us better logistics to service the Scottish retailers and garden centres who are already buying from Stax.
Stax said that Wishart would continue to be run by the firm’s current sales and marketing director George Gardner and that the outlet would continue to operate under its own brand. It also said that it did not plan to make any redundancies in the business.
“This is good news for customers of Wishart,” said Brady. “Stax buying power means that we will negotiate better prices, so retailers will get a better deal. What’s more the Stax range is larger than Wishart so customers will benefit from more choice. It’s a win-win situation.”
Former Wishart chairman Kenneth-Paterson-Brown said: “We are very pleased that Stax has acquired the business and will take it forward for the benefit of both the customers and staff. On behalf of the Wishart family, we’d like to offer our sincere thanks to all our customers and staff and we wish them the very best for the future.”
Stax was advised on the deal by accountants Alexander & Co and law firm Neil Myerson.
Alexander & Co partner Stephen Verber said: “Alexander & Co have been advising Stax since assisting with their MBO in 1986 and that this acquisition demonstrates the management team’s long term ambitions to build on their current Top 300 North West companies position. Wishart will provide an excellent base to continue expansion in Scotland.”
