London computer distributor Wilding Office Equipment Plc is to make its first acquisition since obtaining a Stock Exchange listing in December 1986. It has agreed to buy Whickam, Newcastle-upon-Tyne based Tyne & Wear Office Supplies Ltd for between UKP350,000 and UKP450,000, depending upon the company’s performance over the next two years. Tyne & Wear is involved in the distribution of office equipment to commercial customers in the North East of England and had a pre-tax profit of UKP56,430 for the year to June 30 1987. The initial consideration will be satisfied by the issue of 159,880 ordinary shares in Wilding, credited as fully paid at 220 pence. The vendor will keep 22,727 shares and the rest will be placed with clients of County NatWest WoodMac, Wilding’s brokers. The first deferred consideration of up to UKP25,000 will be equal to the amount by which net profit for the year to the end of last month exceeds UKP100,000. The second will be payable in two cash instalments of up to UKP75,000 based on the company reaching target results in 1989 and 1990. Wilding says the acquisition is part of its strategy of developing itself into a national retail chain through acquisition and organic growth, and takes it into the the North East where it was previously unrepresented.
