National managed print service provider Apogee has confirmed its acquisition of Danwood, reportedly leaving more than 100 jobs in Lincoln at risk.
The sale has been agreed for an undisclosed sum. The deal is the fourth and largest acquisition for Apogee since it secured a significant investment from Equistone Partners Europe.
Danwood’s head office at Harrisson Place on Whisby Road in Lincoln has around 400 staff.
As previously reported in Lincolnshire Business, workers indicated around 120 people are facing redundancy, some of which have been put on three months ‘gardening leave’.
One employee, who wished not to be named, said the news came as a “complete shock” as, despite rumours, “Danwood had been saying everything was fine.
“It’s been very underhand. Danwood said that they had a 10-year plan and they have just sold out.”
The existing Apogee Board of Directors, led by Joint CEOs Jason Collins and Robin Stanton-Gleaves, will continue to manage the group following the acquisition.
Danwood is a leading provider of office technology to SMEs, and the corporate and public sectors in the UK and Ireland.
Apogee said the purchase will significantly enhance its client base with the addition of over 10,000 retained customers and approximately 8,000 transactional customers.
The acquisition increases the group’s annual revenues to over £250m.
Jason Collins, Joint CEO of Apogee Corporation, said: “This significant acquisition for Apogee provides us with the scale and reach to be a leading player in the European market for managed print services.
“Danwood has terrific strengths that complement Apogee’s offering and strategy, including a large client base of major corporate businesses, government and public sector organisations, and a strong service network that will increase the group’s coverage and capacity to support its clients across the UK and continental Europe.”
Danwood’s previous management have been unavailable for comment.
Apogee has not clarified indications that more than 100 members of staff will be made redundant, but it is believed that reviews into business is now underway.
Lincoln MP Karl McCartney said: “I have had a very close and productive relationship with Danwood in the past and I fully expect that to continue under the auspices of Apogee in the future.
“As the city of Lincoln’s member of parliament, I have assured Apogee that I will always consider my constituents and their employment opportunities as a priority and that I remain on hand to assist them in any way I can so that, together, we can ‘Put Lincoln First’.”