‘Exertis will be a challenging acquisition for private equity yet not impossible’ - Distribution leaders react to Exertis sale

Exertis owner DCC announced plans of a potential sale of the distributor this week

The distribution industry has weighed in on the potential sale of Exertis by DCC, with leaders stating a deal would be the right move for Exertis but could be difficult finding a buyer for the £1.7bn-revenue giant.

Exertis owner DCC this week announced plans to switch focus to its energy business, leading to sales of its other two divisions DCC Healthcare and DCC Technology.

The LSE-listed company has begun preparations for the sale of DCC Healthcare, expected to complete in 2025.

Meanwhile DCC will kick off a strategic review of options for DCC Technology “within the next 24 months”.

Exertis IT CEO Tim Griffin welcomed the opportunities DCC’s strategic update presents.

“Our focus remains as ever on delivering for our customers and vendor partners. DCC’s strategic update provides another opportunity for us all to grow and progress, and we’d like to reassure our customers and vendors of our commitment to them, to adding value, to delighting all our partners and enabling their success.”

To find out what the rest of the distribution landscape thinks of the potential sale, CRN spoke with three UK distributor leaders for their knee-jerk reaction.

Dave Stevinson, CEO, QBS Technology Group

“This is absolutely the right decision for DCC. They have been wonderful custodians of the distributor and have rightly recognised it’s time for the firm to move to new ownership. This decision was validated by the capital markets positive reaction to the news.

“Exertis will be a challenging acquisition for private equity yet not impossible. I cannot think of an obvious trade buyer due to the scale and disparate specialisms.

“Notwithstanding this Exertis is a fantastic brand with an amazing pedigree in the UK distribution landscape. Whoever takes the mantle forward or has an interesting and exciting time.”

Hayley Roberts, CEO, Distology

“Distribution should be as agile as possible, especially where we sit in cyber. So, if the sale of Exertis means they can pivot more easily to their areas of focus it will be a good thing.

“Given the tough 18 months business generally has had I think by retaining focus and honing in on what makes every business tick is the right strategy.

“We have to start to look at all changes in strategy and structure as good things following business challenges. Not as a way to unearth weaknesses and one upmanship.”

Alex Tatham, strategic board advisor, QBS Technology Group

“Exertis has been through a hiatus recently with the loss of some key vendor partners leading to the refocus in specialist areas in which the business is strong.

“The appointment of Jamie Brothwell is inspired and I know she will do wonders with her team delivering for customers.

“I quite understand that DCC are focusing on the business that generates greater shareholder value and I am sure that Exertis will find a great owner. There is plenty of value there.”

David Grant, CEO, Westcon-Comstor

“Distribution is a dynamic, rapidly changing market and the potential activity regarding Exertis is another example of this.

“As we look to 2025, value-added distributors everywhere – including Westcon-Comstor – occupy an increasingly strategic, central role in the technology ecosystem.

“As a sector we have an opportunity to demonstrate and communicate this value to the wider business, financial and investment community.”