Thursday, April 21, 2005

Electrograph Acquired

Electrograph parent company Manchester Technologies was acquired today by New York-based Caxton-Iseman Capital. It was a cash deal valued at approximately $56 million. Manchester shareholders receive $6.40 per share in cash. The acquisition is expected to be completed by the third quarter of 2005.

Electrograph will become a private company doing business as Electrograph Systems, Inc. Alan Marc Smith becomes CEO. Smith is the former president and CEO of Westcon Group, Inc., and is an investor in the acquisition. Sam Taylor, president of Electrograph, will remain in his position and will also invest in the transaction.

Electrograph, a premier value-added distributor of Pro and high-end HomeAV equipment, was founded in 1982.

Sam Taylor said: "This transaction with Caxton-Iseman is a positive development for Electrograph, and our vendors, customers and employees. Under new ownership we will continue our tradition of value-added distribution for our customers. Electrograph will offer the best selection of large format displays and associated peripherals as well as the highest level of service and support in our industry. Concurrently, we will actively pursue new ways to add value for our business partners."

According to the announcement, Alan Marc Smith was CEO of Westcon Group, Inc. from 2001 to 2004, during which time he oversaw the growth of the company from $200 million in revenues to more than $2 billion, and from 120 employees to more than 1,200. As CEO he managed eight acquisitions and 24 subsidiary integrations in 16 countries. Smith served as executive vice president and COO of Westcon Group from 1998-2001 and director of business development and planning from 1997 to 1998.

Other holdings of Caxton-Iseman Capital, Inc. include Ply Gem, a company that makes vinyl siding, windows, patio doors, fencing, railing, decking and accessories for home construction, and Anteon International Corp, an IT technology provider. Caxton-Iseman also owned Buffets Inc. as of mid 2004.

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