SCC sets out £300m M&A war chest
Channel player makes it clear that it is going to be dipping into the acquisition market in the next few years
SCC has made it clear that it is planning to flex its financial muscles and get involved with the M&A opportunities out in the channel.
The firm has established a £300m technology investment programme, which will target assets across the UK, Spain and France over the next five years.
The decision to share details of the M&A war chest is being described as a display of commitment from SCC owners the Rigby family to remain the leading privately owned channel business across Europe.
SCC has been helped in its ambition to grow the business by a strong performance so far this year, with the expectation that it will hit sales of £2.9bn in 2022/2023.
The five-year plan is being backed by committed £200m of equity and £100m of debt to SCC over that period and a further £150m of equity will support technology investments, under the banner of Rigby Technology Investments, over the same period.
The firm also indicated that a fresh head of corporate development and strategy for SCC EMEA will come on board in January, tasked with helping plan and deliver the M&A strategy. SCC hinted that it is already gearing up its expansion strategy and 2023 will see some M&A announcements.
James Rigby, CEO of SCC and co-CEO of Rigby Group, said the time was right for the business to look at further expansion.
“While we are entering more challenging economic times, SCC is committed to a sustained multi-generational vision, and over the coming years we intend to leverage the strength of our long-term private company positioning and decision-making to not only strengthen existing operations, but to also broaden our capabilities,” he said.
“We are looking to make a series of investments in the UK and Europe that will enhance our client offering with an array of rich new services to further underline SCC’s standing in the sector.”
Rigby Group co-CEO Steve Rigby added that the channel business remained a cornerstone of the Rigby Group.
“Technology, with SCC at its heart, has always been and will always be the core component of Rigby Group’s operations, and the Rigby family’s commitment to SCC as our single most important asset remains the cornerstone of our strategy,” he said.
“Utilising a combination of significant cash resources and available banking facilities, over the next several years we are committed to investing over £500m to further support Rigby’s development with the very clear intention of cementing our position as the largest private investor in the European technology space.”