ACCO Brands has agreed to acquire Trust, a European computer, gaming, and mobile accessories company, as it accelerates a strategic shift toward faster-growing technology peripherals. Financial terms of the transaction were not disclosed.
Trust generates approximately $100 million in annual revenue and is expected to be modestly accretive to ACCO Brands’ adjusted earnings per share during the first 12 months following completion of the acquisition.
ACCO Brands expects to generate approximately $5 million to $8 million in cost synergies within 18 months after closing as Trust is integrated into the company’s European operating platform.
The acquisition follows ACCO Brands’ recent purchase of EPOS and further expands a technology peripherals portfolio that includes Kensington, PowerA, and EPOS.
On a pro forma basis, ACCO Brands expects its technology peripherals businesses to approach $500 million in annual sales following the Trust acquisition.
That represents an important component of ACCO Brands’ broader effort to shift its portfolio toward product categories offering stronger growth prospects than some of its traditional office and learning products.
Founded in 1983 and headquartered in the Netherlands, Trust has operated in the consumer electronics market for more than four decades.
Its product portfolio includes keyboards, mice, headsets, speakers, webcams, chargers, gaming peripherals, smart home products, and mobile accessories.
Trust distributes its products through major retailers, e-commerce platforms, and business-to-business channels and serves customers across Europe and Latin America.
The company operates an asset-light business model with outsourced manufacturing and scalable sourcing capabilities.
For ACCO Brands, Trust provides an established European consumer electronics brand that complements its existing technology portfolio while broadening its exposure to several large peripherals categories.
The combination could also give Trust access to ACCO Brands’ global distribution capabilities, supply chain infrastructure, and relationships across retail and commercial channels.
ACCO Brands sees opportunities to use that scale to increase Trust’s reach while accelerating product development and expanding distribution.
The transaction also builds on ACCO Brands’ strategy of allocating more resources toward technology accessories used for work, gaming, learning, and entertainment.
Trust’s gaming products complement ACCO’s PowerA business, while its broader PC peripherals portfolio aligns more closely with Kensington and the recently acquired EPOS brand.
Bringing those businesses together gives ACCO Brands a wider lineup across keyboards, mice, headsets, chargers, gaming accessories, and other connected workplace and consumer technology products.
The deal could also create operating efficiencies through combined sourcing, distribution, and European infrastructure.
ACCO Brands plans to finance the acquisition through borrowings under its revolving credit facility.
The company expects the transaction to have limited impact on pro forma leverage.
The acquisition is expected to close in the late third quarter or early fourth quarter, subject to customary closing conditions and applicable competition authority approvals.
Trust is being acquired from Egeria, a pan-European investment firm focused on mid-sized businesses primarily across the Benelux and DACH regions.
KEY QUOTES:
“Building on the strategic pivot to an enhanced focus on faster-growing categories and the recent acquisition of EPOS, Trust adds a well-established brand and an impressive peripherals lineup that complements Kensington, PowerA and EPOS, deepening our presence in some of the largest and fastest-growing categories in technology peripherals.”
“This acquisition continues the shift of our product and brand portfolio toward higher-growth technology peripherals, which will now approach $500 million in annual sales on a pro forma basis. We expect to deliver cost synergies as we integrate Trust into our European platform.”
Tom Tedford, President and CEO of ACCO Brands
“Joining ACCO Brands is an exciting next chapter for Trust. ACCO Brands’ global scale, supply chain, and channel relationships will help us accelerate innovation and reach even more consumers and business customers across Europe and beyond.”
Jeroen Hoogland, CEO of Trust
