ALSO Group and Westcoast announce merger

Westcoast chairman Joe Hemani is set to become a major shareholder in ALSO as merger awaits regulatory approval

In a significant development for the European distribution sector, European powerhouses Westcoast and ALSO Group have announced a merger agreement, retaining the ALSO name.

The merger is pending regulatory approval.

Westcoast chairman Joe Hemani (pictured, right) is set to become a major shareholder in ALSO, which is primarily owned by the Düsseldorf-based Droege Group.

The merger involves Westcoast's UK, Ireland, and France businesses, while the German and Dutch operations will remain under Hemani's control.

This merger follows the 2022 acquisition of telecommunications distributor Komsa by Westcoast, a deal planned to be completed by 2025.

Neither Westcoast, nor Komsa have provided any updates on this integration since the announcement.

Recent financial performance shows Komsa's output fell nearly 10 per cent to €1.1bn for the 2022/23 financial year, while ALSO reported a 7 per cent decrease in sales to €5.1bn in the first half of 2024.

Westcoast, founded in 1983 and with a workforce of 1,000, reported sales of £4.2bn (approximately €5bn) in 2023.

The merger, facilitated by Hemani and Gustavo Möller-Hergt (pictured, left), chairman of the ALSO board of directors, is considered 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 collaboration in the cloud business.

According to Möller-Hergt, this merger will enhance 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 5 per cent to CHF253.50.