Business as usual as two-year strategic review begins – Exertis UK CEO Tim Griffin

At the end of a week when it was announced Exertis owner DCC Group is selling the distributor to focus on its energy business, UK CEO Tim Griffin is upbeat and positive about the news.

“It’s not a drama from my point of view. I see it as a big opportunity to have an owner that is focused on us,” Griffin told Mobile News.

“The Exertis sale announcement is news, but it’s good news,” Griffin explained.

“It’s a positive step for us as we evolve, and it’s business as usual. This is no different from Westcoast being sold or Ingram going through its transition from private equity to IPO, or Tech Data’s private equity move and subsequent merger with Synnex. Capital structures change all the time. This industry is accustomed to operating in a constantly changing environment regarding ownership models. This isn’t unusual.

24-month strategic review

“We are starting a 24-month strategic review of the business. A new owner could come from anywhere across the spectrum of capital structures. It could be a trade buyer, an equity partner, or private equity—really anything. We’ll be looking at who will be the best owners for the assets we’ve got.”

When examining DCC’s overall business, it becomes clear why it is concentrating on energy activities.

Energy makes up 75 per cent of DCC’s operating profit. DCC Energy distributes LPG, natural gas, and other fuels across Europe and North America. It is also investing in solar power and hydrotreated vegetable oil to support decarbonisation. In the UK, DCC manages smart meter infrastructure.

“DCC has been a brilliant owner”

“DCC has been an absolutely brilliant owner for us for many years. Their strategic decision to focus on energy will ensure an orderly transition to a new owner more aligned with our needs. Tech and healthcare are less significant to DCC, so this move makes sense for them. They’ve been fantastic, but there’s an even better fit for us moving forward.”

“It’s vital that everyone understands this is part and parcel of how the market operates. Our focus remains on our people, our customers, and enabling both to grow and thrive. That means helping vendors and retailers do more, and we’ll continue to do so regardless of this announcement. DCC CEO Donal Murphy rightly noted in his announcement that this is the best move for all three divisions—energy, tech, and healthcare—making them stronger for the future.”

Whoever eventually aquires Exertis will be in charge of the UK’s biggest mobile tech distributor with a portfolio of more than 700 global technology brands and over 13,000 resellers, e-commerce operators and retailers.

Exertis’ mobile division has had to adapt to a market now consolidating around Apple and Samsung. Brands like Sony Ericsson and Huawei, once flagship partners, are no longer as prominent. But Griffin maintains a broader perspective:

Biggest distributor of smartphones

“I wouldn’t characterise it as a two-horse race. There are many excellent vendors in the mobile space that we represent and do strong business with. We continue to be the biggest distributor of smartphones in the UK.”

Exertis represents Apple in its Irish operations but does not handle Apple in the UK.

“We have a very strong relationship with Apple. Meanwhile, we’ve built a solid partnership with Samsung, covering everything from first life to second life through our MTR business. The second-life market is fascinating,” Griffin said.

“When you look at sustainability models, residual values and second life become crucial. We’re well-positioned to serve this market. Mobile is hugely important for us. We handle Honor, Motorola, and nearly every other major brand you can think of, except Apple.”

“As far as the DCC announcement is concerned, nothing is happening overnight. The reality is, nothing changes. It’s essential for everyone to understand this is entirely normal for the industry. We remain focused on delighting our customers.”