After two failed merger proposals that played out over two years, photographic products distributor HE Perry has been bought by the company’s general manager and a business partner.
HE Perry general manager Simon Millidge and Evan Rentzios, who Millidge says is outside the industry, closed the transaction on 1 July, with terms undisclosed. HE Perry’s parent company Broadway Industries initially planned to merge with Lacklands, a distributor that also supplies the photographic market, but a rights issue last year failed to raise sufficient funds.
It was then proposed that Lacklands buy HE Perry instead, but Broadway announced in May the deal would not go ahead. Millidge says after Lacklands’ bid also failed to come to fruition, HE Perry management approached Broadway’s board with its alternative buyout proposal.
“HE Perry is a great brand, has great products and systems and excellent staff. The only issue the business has is business overheads are a bit high compared to its sales,” he says. “I wouldn’t have bought it if I didn’t believe it can be profitable and it has great potential for the future.”