Sale causes Tate problems

Tate Access Floor Systems has been left in an awkward position following the acquisition of its UK distributor and installer, Thorsman, by main rival Hewetson.

Hewetson was already the dominate player in the UK raised access floor market before the acquisition of Thorsman's flooring unit for œ4.1 million. Following the purchase Hewetson will gain 40-50% of the market according to a rival raised access floor company.

Tate has been quick to reassure its customers that it is business as usual. It issued a statement saying: "Thorsman is the appointed UK distributor and installer of Tate - the leading brand of high quality raised access floor systems. The Thorsman name and services provided to Tate will continue under the Hewetson umbrella, providing continuity of product supply and customer support."

Tate managing director Clive Memmott said: "We are confident that, under Thorsman's new ownership, Tate systems will continue to be supplied, installed and serviced to the same high standard we have enjoyed in the past."

When contacted by CJ, a spokeswoman for the company would not comment on whether Tate would be appointing another distributor and installer or whether it would set up its own installation division.

However, Hewetson Floors also makes steel support raised access floor systems. Another raised access floor manufacturer commented: "It depends on what agreement Tate have with Thorsman as to what they will do. I imagine they may well change things when that agreement comes up for renewal. Given that Hewetson is a rival, business logic would dictate what to do.

"Hewetson will have a very dominant position now. It effectively takes one name out of the market, so that's one less for architects and specifiers to choose from. There is work around at the moment, but it is very cut-throat."

Hewetson plans to combine machinery with Thorsman, whose operations will move from Blackburn to Hull later this year, along with 30 support people. A further 30 will be recruited to operate the production side of the operation.

The acquisition is undoubtedly a good business move for Hewetson, which bought timber component manufacturer Hoffman for œ3.5 million at the same time. The two companies made profits of œ1 million last year from a combined turnover of œ17 million. Hewetson's earnings which fell from œ1.4 million in 1994 to œ813,000 in 1995 based on group sales of œ44 million.