CMS Distribution has increased its stake in Scandinavian distributor Newgen Distribution AB by acquiring a majority stake in the business, making Newgen a subsidiary of CMS.
Newgen’s founder shareholders Axel Diurson and Max Ellberg will stay on with the business as joint managing directors, and retain the remaining share capital. Newgen sales in 2016 are expected to exceed SEK 130 million (£11.3m), up 100% on the previous year. CMS Distribution acquired a minority stake in Newgen as part of its acquisition of distributor Widget earlier this year.
Frank Salmon, CEO of CMS Distribution said “We are delighted to increase our involvement with the Scandinavian markets. CMS wants to become a significant player in continental Europe, opening up more opportunities for our suppliers and offering the benefits of scale to our customers.”
Newgen will be managed separately from CMS Distribution BV, the group’s 100% owned subsidiary in continental Europe, which is based in Eindhoven, Netherlands.