A Mayo company which distributes storage technology and have annual sales of €145 million have just acquired Yorkshire based, CCI Distribution.
The landmark deal has ensured that CMS Peripherals in Kiltimagh are now the biggest independent data storage distributor in Britain and Ireland. Despite the recession founder and managing director Frank Salmon said the firm have enjoyed consistent revenue growth of between 9 and 10 per cent over the last three years.
Mr Salmon said he believes it is a ‘fairly resilient sector’ and he said he believes the fact that people are now more likely to be at home due to the difficult economic climate meant there was a greater chance that they would be ‘downloading more stuff’.
“We saw a great opportunity to buy a like-minded, successful distribution business that would offer our customers a broader range of storage solutions”. He added. “The acquisition will also support our three-year business objective of 20 per cent annual growth that would take us to turnover of €250 million.”
CMS Peripherals distribute a wide range of products in the consumer storage and business market. Large retailers and resellers are prominent buyers of their products.
Mr Salmon said he believed that the deal will help to create more opportunities for his team in Mayo and this was positive news for the county. He said it is likely that new product and customer opportunities will arise out of the deal to take over Yorkshire company CCI Distribution.
CMS Peripherals was founded in 1998 and their headquarters is based at Kiltimagh where 50 of their 175 staff members are employed. This is the first takeover of its kind by CMS. Mr Salmon refused to comment on how much his company had paid for CCI Distribution but he said he had ambitions to possibly expand further in the future.
“There’s a lot of good value in the market at the moment, because there are a lot of distressed companies in the distribution space. We will maintain our strategy of organic growth but will also be looking for other opportunities.”