CHA looks for new a perfect match

CHA looks for new a perfect match

Tech Data is a "good example" of an international company CHA might want to partner with, but the distributor is not holding its breath.

In the latest twist to CHS's failed acquisition of CHA, managing director Stephen Sampson said he will keep the door open for other investors to fill the gap.

CHA told ARN last Thursday CHS has breached its contract with the distributor by failing to give it the necessary financial assistance needed to grow in the Australian market.

At the time, CHS still had 14 days to go before Sampson said the contract between the companies would be null and void, finally ending the saga. "I don't expect them to do anything about it," he said of the contract breach.

Sampson explained that CHS it attempting to fill its coffers with funds sourced from local management buyouts in each of its international operations.

But while he said Tech Data is the type of company that might suit CHA, he conceded they are not interested in his company.

Sampson also noted the number of companies that could invest in CHA are limited, stating he believes Ingram Micro is an example of many distributors who do not have the right business model.

"Virtually all of the distributors are following a dangerous model," he said.

Sampson said distributors need either equity or debt funding to maintain serious growth levels. "There is a limited amount of [debt funding] that you can sustain," he said.

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