Ambertech Limited has acquired Sydney-based distributor Convoy International, who have struggled since the sudden death of Convoy founder Geoff Mathews.
Ambertech is believed to have paid between $2.8M and $3.00M for the business that was among the first distributors in Australia of premium audio products.
Original Convoy trade show stand.
Convoy was established in 1965, and today their product range includes Bluesound, NAD Electronics, JBL Synthesis and Studio Monitors, Cary Audio, Revel Loudspeakers, Mark Levinson, PSB Loudspeakers, IsoAcoustics, and Sonitus Acoustics.
In a statement to the ASX Ambertech, management said, “The acquisition represents another important step in executing Ambertech’ s strategic growth plan.”
Details of the Convoy acquisition include:
– Consideration for the acquisition is anticipated to be, net cash, in the order of $2.8m-
$3.0m, and includes:
o Inventory and accounts receivable dependant on valuation at settlement.
o Business use assets; and
o Goodwill of around $0.5m, subject to final valuation
– Funding for the acquisition is by way of existing cash reserves;
– Initial incremental revenue growth from the transaction is expected to be $4.0M-$5.0M
annually, with ongoing growth potential; and
– Completion of this transaction is expected to be on or about 31 January 2023.
Peter Amos, Managing Director of Ambertech said: “We are very pleased to be adding
prestigious Convoy brands to our portfolio such as NAD, Bluesound, and JBL Home. These brands
allow Ambertech to expand our solutions for residential installers and specialist HiFi dealers and
consolidates our position as the supplier of choice to these markets.”
Robert Glasson, Chief Operating Officer at Ambertech added: “We have established a strong set
of acquisition criteria as a fundamental element of our growth strategy, and Convoy is a business
that we have been following for many years”.
