Tim Griffin talks Exertis restructure, ideal buyer and vision for the future
‘We're looking at this from a global perspective. The ideal buyer will understand our international footprint and see the value in our diverse geographic presence,’ the CEO explains.
Following the announcement that UK top four distributor, Exertis, could be going up for sale as current owner DCC seeks to realign its portfolio, CRN sat down with CEO Tim Griffin to discuss the implications of the sale, the immediate and long-term priorities and how this fits in with the broader distribution landscape.
Griffin emphasises that despite the impending sale, it's "business as usual" at Exertis.
"My focus is on delighting our vendors and customers, regardless of what's happening with the capital structure," he states.
This commitment to continuity aims to reassure stakeholders during the 24-month business review and transition period, underlining the company's dedication to maintaining its high standards of service and partnerships.
What would DCC and Exertis look for in a buyer?
Discussing the ideal buyer for Exertis, Griffin expresses a desire for "a partner interested in investing in distribution” regardless of whether this was a trade buyer or a private equity takeover.”
He elaborates on this vision, saying: "We're looking for someone who understands the journey of companies like ours and sees the potential for a better owner for Exertis."
Griffin envisions a future where Exertis can thrive as "a specialist distributor in AV, print components, mobile, and IT solutions," leveraging its expertise in these key areas.
Griffin also touches on the global nature of the business and its implications for the sale.
"We're looking at this from a global perspective. The ideal buyer will understand our international footprint and see the value in our diverse geographic presence," he explains.
The announcement of the sale has prompted extensive communication efforts within the distie and with external partners.
According to Griffin, he personally reached out to over 100 resellers, assuring them of business continuity. That said, the industry and Exertis’ client base have been overwhelmingly supportive of the move, he tells CRN.
This also extends to Exertis employees, according to the CEO.
"Employees with longer tenure find the change more noticeable, while newer employees are less concerned," he says.
To address this, Griffin has emphasised "communication and reassurance to focus on controllable aspects like delighting customers."
To split or not to split?
Given recent M&A news in the channel, the question of whether the business will be sold as a single unit comes up.
When asked about the possibility of selling parts of Exertis separately, Griffin says a split along geographic or sector lines is something the business could consider.
However, he does not see a split between the consumer and B2B lines as a likely outcome, even as the distie recently announced a restructure with a clearer delineation.
"Breaking apart integrated businesses without destroying value is difficult."
He indicates a preference for "a single global transaction" to maintain the company's integrated structure, stating: "We're looking at geographic and line of business models for potential divestitures, but it's crucial to preserve the value we've built."
Looking ahead, Griffin outlines key milestones for the next 24 months, including "preparing parts of the business for sale and getting the best possible value."
Post-sale goals for Exertis focus on three main areas: "organisational health, financial health, and operational excellence."
For 2025, Griffin identifies several high-growth areas: "IT solutions, AV, components, print, and mobile."
Across consumer and business, the distie hopes to ride the PC refresh wave as it sparks hardware demand, while the business’s close relationship with NVIDIA means that it is likely to benefit from the GPU boom.
Meanwhile, after a year-long hardware lull, Griffin foresees “a supply chain challenge in October 2025 due to the Windows 11 upgrade."
Immediate priorities for Q1 2025 include "managing the peak season and keeping commitments to customers."
Griffin emphasises the transition "from a retail peak to a reseller peak" between December 2024 and Q1 2025, as well as the importance of "delighting customers" throughout this period.