Acquisition will help Canford

Jun 6 2007 By Iain Laing, The Journal

Law firm Ward Hadaway is helping audio manufacturer and distributor Canford Group make a bigger noise by closing two deals for the group.

The Newcastle-based firm advised Washington firm Canford on its acquisition of North Tyneside computer components and accessories distributor Ash Distribution.

The six-figure deal follows the recent acquisition of Panamic Sound Booms, which makes microphone boom poles used by sound recordists.

The Washington company, with sales of £17m, has added about £3m to that figure with the purchase of Ash Distribution and Canford chairman Hugh Morgan Williams hoped to add £2m to Ash's sales in the next two years.

Ward Hadaway advised on both transactions for Canford, a long-standing client of the firm. Richard Butts, associate in the corporate finance team at Ward Hadaway, led the team on the deals.

He said: "Canford is a market leader in its field and these acquisitions should fit in very well with the rest of the group.

"We were very pleased to be able to play a role in developing and expanding Canford's business."

David Crone, was the partner at Ward Hadaway with overall responsibility for the transactions.

He said: "Our team of specialists, which included employment, property, IT and intellectual property lawyers, meant that we were able to conclude the deals successfully."

Ash Distribution was established 10 years ago and supplies computer dealers, the education market, local authorities and businesses with products ranging from cables to printer cartridges.

The company, which is based in Longbenton and also has a representative in China, recently launched its own brand of computer accessories and peripherals, Trueway.

Panamic Sound Booms makes recording equipment previously used in major films including Indiana Jones and The Temple of Doom and Empire Of The Sun.

Canford plans to shift production of the booms to its factory in Weymouth, Dorset, following the acquisition. Tait Walker provided financial advice to Canford Group on the Ash Distribution deal, with funding from Lloyds TSB.

Mr Morgan Williams said: "Canford's long association with Ward Hadaway proved very beneficial in concluding these deals in a timely and efficient manner."

Ash has been established 10 years and was set up by two former British Gas employees, Ken Ash and Dennis Thornton. The business supplies computer dealers, the education market, local authorities and businesses with products from cables to printer cartridges.

Mr Ash said: "We are very pleased that our company has found such a good home. Canford's strengths in distribution, finance and IT infrastructure will enable the company to grow at a faster pace."