Key vendors represented by distributor MEC seem set to follow it to Comworth Group under the recently-announced acquisition deal.
Comworth’s acquisition of MEC will take effect on 1 April, and both firms say the main vendors on MEC’s books are positive about the move.
Comworth general manager Mark Charlesworth says it has been working to “transition” agreements with Panasonic, Konica Minolta and LG. MEC managing director David Hill says Toshiba has also reacted favourably to the move.
“In effect we’ll be taking over the agencies that MEC currently has. At the moment it’s just straight continuity,” says Charlesworth, adding it could potentially represent a broader range of products offered by the vendors.
Comworth will retain about half of the 11 MEC employees, taking on sales and service staff but not administration, finance, logistics and support roles, says Charlesworth.
He says MEC will effectively be run as a division of Comworth under its managing director David Hill. Comworth wants to give “more horsepower” to the MEC business, and give Hill the resources to run and grow it, he says.
Hill says there has been a friendly relationship, and healthy competition, between the companies over the years, with the respective founders attending university together and progressing into careers with print vendors in New Zealand.
MEC was founded in 1980 by Fisher and Paykel, which was the local Panasonic agent at the time.