Erskine House Group Plc, which distributes office equipment in the UK and the USA, has made an agreed bid for Chandlers Ford, Hampshire-based microcomputer distribution and maintenance outfit Quest Group Plc. Merchant bankers J Henry Schroeder Wagg & Co, which is handling the deal, is offering seven Erskine shares for every 12 Quest shares, a total issue of 13m new ordinary shares or 28.6% of the enlarged share capital. The all-share bid, based on the market price of 215p per ordinary Erskine share, values Quest’s shares at 125.4p – 53% over the market price of 82p at close of dealing on September 16 – and the company at UKP25.8m. An Erskine spokesman said the supply of microcomputers was a logical addition to Erskine House’s existing product range, which includes photocopiers, facsimile machines and typewriters. The board believes the acquisition of Quest’s software and networking experience coupled with its maintenance operations will improve its position in the office equipment market. Quest currently employs 280 people and reported pre-tax profits of UKP3.4m on turnover of UKP32.1m for the year ending February 29. Its business is divided into two divisions: Quest UK, which accounts for about 40% of sales, and Quest International, which supplies systems overseas, principally into the Soviet Union, where it is one of only nine UK commercial companies with accredited status. For the year ending March 31 Erskine reported pre-tax profits of UKP9.2m on turnover of UKP102.6m, it employs 2,500 people and has been involved in a number of US acquisitions in the last two years.
