Devonshire Corporate Finance advises on the sale of Hammer Consolidated Holdings Ltd to Exertis

Devonshire Corporate Finance Ltd (DCFL) advised the shareholders of Hammer Consolidated Holdings Ltd, a leading specialist distributor of server and storage solutions, on the sale of their business to DCC Technology, which trades as Exertis.

DCC Technology has agreed to acquire Hammer Consolidated Holdings Ltd, which in its financial year ended 31 January 2016, earned an operating profit of £6.3 million on revenue of £155.0 million. The transaction is conditional on competition clearance from the European Commission and is expected to complete by the end of the year. The consideration will be paid entirely in cash and is structured as an initial payment at completion, followed by earn-out payments over three years based on Hammer’s future trading results.

Based in Hampshire and employing 165 staff, Hammer distributes server and storage products for a broad range of leading suppliers including Dell, Intel, NetApp, Seagate and Western Digital. Hammer’s business is considered to be complementary to Exertis’ existing server and storage business, and will strengthen its supplier portfolio with the addition of almost 1,000 reseller customers.

Managing Director of Hammer Consolidated Holdings, James Ward comments: “Marc has worked with us 11 years, when he and the team supported our management buy-out. He has supported us in this process by offering advice and assistance every step of the way. Because of our longstanding relationship they really understood our ambitions and delivered them. We are delighted with the result and have no issues in recommending Marc and his team to others.”

Marc Fecher, Head of Devonshire Corporate Finance says, “I am delighted that I have been able to support the shareholders in achieving their objectives by leading on the sale process, including complex negotiations. Having forged a close relationship with James and his team 11 years ago when we assisted them to originally buy the business we were able to support their next step – successfully selling the business to a strategic buyer. Exertis have made an excellent acquisition of a strong business.”