News

OFT opens door to Bertrams/Dawson merger

19.07.11 | Lisa Campbell

The Office of Fair Trading will not refer the merger of Bertrams and Dawson to the Competition Commission, it said today.

Smiths News Plc, which owns book wholesaler Bertrams, announced the £20m deal to buy Dawson Holdings in early June, and referred the merger to the OFT “given the size of the transaction” for its “own comfort".

Smiths News said it was pleased with the decision and is now asking Dawson shareholders to officially agree to the sale by 3pm on 2nd August.

The merger is expected to complete in September when the 180 Rushden-based Dawson staff will begin consultations about redundancies and integrating with Bertrams’ staff at its headquarters in Norwich.

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By JULIAN RIVERS

This looks good for the trade to me . Two strong wholesalers competing aggressively as do Berts and Gardners in retail, library, and eventually digital content supply is enough to keep it all "honest" , whilst allowing enough leverage to negotiate adequate input margins from publishers.
The last point is not being [and never has been] pushed agressively enough in my view.
Publishers need to pay more for the wholesaler route to market and the added value applied to that route by wholesalers .[ vast range and depth of stock with 95%+ availability of [ publisher available] lines with v. low % returns , rapid supply to customers,substantial promotional activity with field support, highly sophisticated retail computerisation packages, and finally a hedge for publishers against bad debts of smaller players in the market.

Compare this to the rip and burn grocers on 10% more margin and big orders of a narrow range but massive 35% returns. One is keeping the indies and others in the trade alive, and the other is killing it .

Wed, 20/07/2011 - 12:16
By dave

"when the 180 Rushden-based Dawson staff will begin consultations about redundancies and integrating with Bertrams’ staff at its headquarters in Norwich."

Good luck to all you Dawsons people. It is a shame that you have this long wait for your trip to the gallows. I really feel for you. To have your woking future discussed in public and everyone with the same sense of innevitability that somehow Smiths have to justify paying 20m by closing the Rushden place down.

Thu, 21/07/2011 - 16:49
By JULIAN RIVERS

This looks good for the trade to me . Two strong wholesalers competing aggressively as do Berts and Gardners in retail, library, and eventually digital content supply is enough to keep it all "honest" , whilst allowing enough leverage to negotiate adequate input margins from publishers.
The last point is not being [and never has been] pushed agressively enough in my view.
Publishers need to pay more for the wholesaler route to market and the added value applied to that route by wholesalers .[ vast range and depth of stock with 95%+ availability of [ publisher available] lines with v. low % returns , rapid supply to customers,substantial promotional activity with field support, highly sophisticated retail computerisation packages, and finally a hedge for publishers against bad debts of smaller players in the market.

Compare this to the rip and burn grocers on 10% more margin and big orders of a narrow range but massive 35% returns. One is keeping the indies and others in the trade alive, and the other is killing it .

Wed, 20/07/2011 - 12:16
By dave

"when the 180 Rushden-based Dawson staff will begin consultations about redundancies and integrating with Bertrams’ staff at its headquarters in Norwich."

Good luck to all you Dawsons people. It is a shame that you have this long wait for your trip to the gallows. I really feel for you. To have your woking future discussed in public and everyone with the same sense of innevitability that somehow Smiths have to justify paying 20m by closing the Rushden place down.

Thu, 21/07/2011 - 16:49

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