The management of Sydney-based distributor, Alstom Information Technology, has approached its parent company, Alstom, with an offer to buy-out the local IT distribution arm.
With the international energy, transport and logistics giant (Alstom) restructuring its business on a worldwide basis, the management team of Alstom IT – consisting of managing director Laurie Sellers, general manager Greg Newham, finance manager Katie Kenny and operations manager Ken Harper - has pitched for Alstom IT (currently a division of Alstom Australia) to become an independent and Australian-owned company.
Sellers said that Information Technology Distribution was not a common business for Alstom around the globe.
“It is relatively unique to Australia,” he said. “We put forward a proposal for a management buy-out and Alstom is willing to consider it.”
The management team hope to reach an agreement with the parent company before Christmas. In anticipation of a positive response, the team has begun preparing financial backing and seeking support from its vendor partners. Sellers said the financial backing would consist of private equity, with some working capital support from a major bank.
There wouldn't be any external borrowings, he said.
“It is not without risk and we are very conscious of that,” Sellers said. “It is daunting to no longer be afforded the protection [of Alstom] if the deal goes ahead. But we are very excited about the opportunity - this management team has worked together a long time and we regard it as a great business.”
Alstom IT’s suppliers had been informed, Sellers said.