A freshly crafted consortium of industry and business investors has purchased Victorian-based hardware distributor, Multie Technology Distribution (MTD), for an undisclosed sum.
The new syndicate consists of six individuals with backgrounds ranging across IT&T, distribution, corporate management and finance. One investor, Gary Sholl, will take up day-to-day management responsibilities alongside running his existing telecoms services business, Sholl Communications. Other names in the group have not been disclosed.
Sholl said it planned to inject a significant amount of capital into MTD to boost the business up to the next level. All 21 existing staff would be retained.
He said the company had lacked direction and adequate management support. In its most recent first half year report, revenue had dropped from $7.8 million to $6 million compared with the corresponding period last year.
"It was a distressed business that we thought was ripe for the picking," he said. "We will make sure we turn it around so it can go forward. I think the staff are excited someone will be spending time on building the business up again."
This would be achieved by importing more unique products which offered better investment return and higher margins. The consortium had already earmarked several potential suppliers.
"There is a lot of work to do and it's only day one," Sholl added. "It will be a whole new direction."
MTD's parent company, Multiemedia, put the distributor up for sale in January. The decision was based on plans to divest itself of non-core assets. Multiemedia acquired Magnafield in 2001.
Sholl said the company would revert back to the Magnafield name but keep its current acronym - Magnafield Technology Distribution.