Westcon Group, Inc., the leading specialty distributor in
networking, security, mobility and convergence, has increased in
aggregate its banking facilities by $236 million to $610 million (up
from $374 million) for its North American and European subsidiaries.
These facilities will be used to increase Westcon Group's liquidity as
it continues to execute its organic and acquisition growth strategies.
Westcon Group recently announced the acquisition of European-based
Crane Telecommunications, Ltd. and NOXS as well as the business of
North American-based ReView Video, LLC, adding more than 400 employees
and approximately $350 million in annual revenue. The Company also
recently announced a joint venture with Netex, a specialty distributor
based in Turkey, adding to the emerging markets recently opened in New
Zealand, Malaysia and Dubai.
In North America, Westcon increased its credit facilities from
$190 million to $280 million with the ability to add $40 million, if
necessary. The new North American financing was provided by a
syndicated group of lenders led by HSBC Bank USA, which will continue
in its role as collateral agent.
Westcon replaced its existing $170 million pan-European
arrangement with a new $250 million facility, which will be utilized
for working capital and expansion. The new financing was provided by a
syndicated group of lenders led by GE Commercial Distribution Finance
Ltd. In addition, HSBC Bank plc increased its financing to Westcon
from $14 million to $80 million for the NOXS acquisition and related
working capital requirements.
John P. O'Malley III, Executive Vice President - Finance and Chief
Financial Officer of Westcon Group, Inc., commented: "We were able to
complete these transactions on extremely favorable financial terms
while significantly increasing the Company's borrowing flexibility.
Our lenders recognize Westcon Group's financial strength and our
continued growth in both North America and Europe. These new credit
facilities provide us with the capital necessary to support our growth
and acquisition plans."
Patrick J. Doulin, Senior Vice President of HSBC Bank USA added:
"We value our long-term financing relationship with Westcon Group,
which has experienced considerable growth during the past year. HSBC
is positioned to support the continued success of Westcon's
multi-national expansion initiatives."
James C. Berry, Senior Vice President of GE Capital Solutions
Europe, commented, "We have been impressed by the financial,
operational and other initiatives Westcon Group has completed. We look
forward to facilitating the Company's future growth."
About Westcon Group
Westcon Group, Inc. is the leading specialty distributor of
networking, security, mobility and convergence equipment for leading
technology vendors, including Cisco Systems, Inc., Nortel Networks
Corporation and Avaya, Inc. Through its Voda One, Westcon and Comstor
divisions, Westcon Group sells products and services to resellers,
systems integrators and service providers. Westcon Group has
particular expertise in the convergence of voice, data and video
applications and technologies, including voice-over Internet protocol,
or VoIP, security for networking and communications systems, remote
access, Internet and e-business, virtual private networks,
videoconferencing and wireless connectivity. For more information,
visit www.westcongroup.com.