Westcon Group 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 who recently acquired Crane Telecommunications and NOXS as well as the business of North American-based ReView Video has added 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 utilised 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.”