Award-winning Capital Document Solutions has acquired Highland Office Equipment as part of their growth plans to achieve turnover of £30m by the end of 2015.
Tom Flockhart, Capital’s Managing Director and Founder, said the acquisition of the long established and highly respected Inverness-based business was the “perfect fit” and would, along with Capital’s current operations, provide comprehensive sales and service cover across the whole of Scotland.
The newly-acquired company complements Capital’s existing operations in Edinburgh, Glasgow, Dundee, Aberdeen and Shetland.
This latest expansion move was supported by the Royal Bank of Scotland. The value of the acquisition is not being disclosed.
All 31 employees of Highland Office Equipment are to remain with the business including Service Director Steven McLennan and Sales Director Alex Main who will play a key role in driving growth in the Highlands and Islands region. The Inverness business will trade under its current name until the end of this year and then come under the Capital brand.
Tom Flockhart, who set up office equipment specialist Capital in 1979, said: “The addition of Highland Office Equipment significantly expands our geographical reach and increases our number of employees to 200 across six operations, each serving and supporting its own area.
“Highland Office Equipment is a company we’ve respected and been associated with for many years. Like us, it has built its reputation on supplying market leading brands backed by first class service and support since being established in 1974. They, like Capital, are also a long established dealer for Konica Minolta and Ricoh products while our HP and their Canon products, as well as furniture and stationery, will further enhance our customer offering.
“We’re looking to invest in the expansion of our new Inverness office, supporting local businesses and organisations in both the private and public sectors, while keeping on top of changes in our fast moving industry. We will use our firmly established infrastructure and experience to provide our products and services to the whole of Scotland – from the Borders to Shetland.
“This is an exciting time for Capital and our new Inverness operation will have a very important part to play as we progress to achieve our target of £30m turnover for the business by the end of 2015.
“We have a track record of supporting the areas in which we operate by developing service engineer apprentices, creating new sales and technical support roles and helping clients’ businesses run more smoothly. We will, with the support and commitment of the long established Inverness team, provide the same level of service for businesses and organisations in the Highlands and Islands.”
Steven McLennan, Service Director at Highland Office Equipment, said: “The opportunity to join Capital Document Solutions and become part of a large independent Scottish office equipment supplier that can truly deliver across the country is an exciting prospect.
“Capital’s ethos of developing each operation to run as its own entity was important to us and we’re delighted an agreement has been reached. This will allow us to continue to give our loyal valued staff and customers peace of mind that it is business as usual for all their sales and service requirements.”
Alex Main, Sales Director at Highland Office Equipment, said: “We are looking forward to being able to provide our customers access to an even greater range of equipment and document solutions.
“Capital’s proven expertise in the major corporate and public sector markets will also benefit our existing as well as new customers. We will continue to support business in the North with the additional capability and support of being part of a large independent Scottish company.”
Kevin Havelock, Regional Director at RBS Corporate & Institutional Banking, said: “Capital Document Solutions is a fantastic, progressive Scottish business, and one we are thrilled to be helping. The acquisition highlights the company’s ambition and we are delighted to be able to support them as they continue to grow. The deal underlines our commitment to helping companies throughout Scotland, and we’re excited about watching Capital continue to develop.”
Capital provides a range of office equipment and document management solutions including photocopiers, printers, scanners and software with comprehensive national maintenance and training support.
The company has won contracts with large organisations and businesses ranging from government bodies, local authorities, oil and gas companies, the voluntary sector and a wide spread of universities, colleges and independent schools.
Capital Document Solutions recorded turnover of £16.5m for its year end in December 2012 – an increase of 14% on the previous year.
As a major supplier to the Scottish public sector through the national framework agreement, Capital won a prestigious award for the high level and quality of its services to end users in this sector. The company collected the Best Service Award at the Government Opportunities (GO) Awards Scotland in October 2012.
Highland Office Equipment provides photocopiers, printers, furniture, stationery, service support and office solutions to a broad range of clients including Dounreay Site Restoration Ltd., NHS Highland and the University of the Highlands and Islands. Turnover for the company is currently £3.8m.
Following the acquisition, Capital’s turnover is now in excess of £20m and puts the expanded company in a strong position to achieve its £30m turnover objective by the end of 2015.
Highland Office Equipment was owned by three directors; Alex Main, Steven McLennan, and Alex’s brother Willie Main, who as planned, is to retire after 35 years with the business.
The company was established in 1974 by two well respected local business figures, Bill Main and Roy McLennan. Alex and Willie are the sons of the late Bill Main and Steven is the son of Roy McLennan.