CDW to take minorty stake in Kelway

Kelway announces that its to buy out Core Capital's shares and seek investment from US reseller, CDW Corporation

Kelway has announced a buy-out of all the shares held by Core Capital, a long-term backer with a 29% stake in the company.

As part of the management buy-out, one of the largest resellers in the United States, CDW Corporation, will take a minority stake in Kelway.

Core Capital became a shareholder back in 2006, investing £8.5m over a period of eight years. The investor will now receive £76m to walk away. MD Dan Laws and founder Phil Doye are to remain the majority shareholders in the company.

Kelway and CDW now plan a tighter integration, extending global supply chain services in both Europe and North America.

“[This] announcement is a significant one and combined with the investment from CDW will enable us to accelerate towards our £1bn revenue goal.” said Phil Doye, Kelway CEO. “Having worked with CDW for over 18 months on joint client opportunities, this investment feels like a natural next step in our partnership.”

Kelway has had a strong financial year with £526m in revenue, a 49% increase from 2013. CDW had net sales of close to $11bn in 2013.

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