A group of young executives with a background in engineering and finance has teamed up to buy businesses in Western Australia, starting with established Wangara firm, Electro Acoustic Co.
A group of young executives with a background in engineering and finance has teamed up to buy businesses in Western Australia, starting with established Wangara firm, Electro Acoustic Co.
The acquisition has been jointly funded by Strattica Group’s Michael Kyriacou, former Volante account manager Andrew Rothon, and Phil Price, who collectively call themselves SRP.
Electro Acoustic Co, generated total revenue of $10 million last year from the manufacture and sale of audiovisual and paging systems.
The 35-year-old business is a market leader in Western Australia in the sale and installation of ‘nurse call’ systems in hospitals and is pushing into the Queensland market.
Electro manufactures its products under licence from a little-known WA success story, Sedco Communications, which pioneered the nurse call market in Australia in the 1960s and is the leading supplier, through its agents, in most states.
Electro was sold by its founders, John and Judy Earnshaw, who are assisting with the change of ownership and plan to retire in about 18 months.
The Earnshaws also own Sedco, after acquiring that company six years ago.
Mr Kyriacou said he has been looking for acquisition opportunities for some time, and teamed up with his partners in order to access larger opportunities.
He described the acquisition as being directly aligned with his expansion strategy for Strattica Group, which provides management consul-ting and commercialisation services.
“Electro Acoustic provides infrastructure for a host of services,” Mr Kyriacou said.
This would include the ability to host start-up businesses on-site and utilise Electro’s national sales network to distribute other products.
“So what we have structured is both a stable positive cash-flow business which we can combine our skills to expand, as well as a foundation to invest in new opportunities that are aligned to SRP’s strategy.”
Mr Rothon, who has resigned from Volante to become Electro’s managing director, said he and his partners were keen to make further acquisitions.
“We are on the lookout for other businesses that we can blend with this one, either vertically or horizontally,” Mr Rothon said.
This would most likely be in electronics or information technology.
Mr Kyriacou said the SRP partners were attracted by Electro’s excellent track record, profitability and the potential to expand from its current level, with 63 staff nationally.
Electro’s nurse call system is installed in numerous hospitals and aged-care facilities, including Sir Charles Gairdner and Royal Perth hospitals. Its audiovisual systems have been installed at Burswood Resort, Perth Convention Exhibition Centre, and the Sheraton and Parmelia hotels.