Van Eyk set to sell to Mercer
Van Eyk Researchhas confirmed it is in discussions with wholesale research group William M. Mercer regarding a deal that would result in van Eyk being sold completely to the group.
At the time of going to print, both parties emphasised the deal was yet to be signed off but discussions were at an advanced stage and were expected to finish in the next two weeks.
If the deal goes ahead, it would create the only group of sufficient scale to be actively offering research on both the retail and wholesale sides of the industry.
Due to the incomplete nature of the talks, neither party was prepared to discuss how much the deal may be worth.
Van Eyk managing director Stephen van Eyk says if the deal is agreed it is still subject to approval by the lawyers of both groups, who will be engaged in due diligence processes over the coming months.
The deal will result in a new name for the retail research group — Mercer van Eyk — and provide both parties with access to markets they had intended expanding into in the near future.
Stephen van Eyk will remain with the group as managing director for at least three years, with both groups confirming there will be no job losses.
Stephen van Eyk says Mercer has for some time indicated it was keen to expand into the retail side of the market after securing a strong position in the wholesale research market.
“We have a strong place in the retail market and Mercer was impressed with the market share of van Eyk, and the addition of their resources will add to our business as well,” van Eyk says.
According to van Eyk, the deal has not been driven by a need for capital and the group did not actively seek buyers.
Mercer chief executive Simon O’Regan says the reason it has looked at purchasing van Eyk is the convergence in the retail and wholesale industries.
“We are impressed with van Eyk’s approach and if we join forces, it will offer more comprehensive services to both sets of clients,” O’Regan says.
O’Regan would not state how long the integration of the two groups would take, if any deal was signed, saying only it would become a priority if the deal went ahead.
AUTHOR
Jason Spits
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