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HIFI-Group Has Acquired Sterling Filtration Ltd.

Dear Valued Customers,

We are pleased to inform you that HIFI-Group has acquired Sterling Filtration Ltd located in Bilston, WV14 0ST. This is a great addition to our global distribution network and especially with the Brexit process ending on December 31, 2020.

HIFI Group is excited by this acquisition. It will offer better services to the existing HIFI clients as well as Sterling Filtration clients. It is also for HIFI Group a great opportunity to strengthen our presence in the UK.

All clients will be contacted shortly by our team. We also prepared a Frequently Asked Question below, but please do not hesitate to contact us if you have any questions or comments.

CEO HIFI Group

Jerome Jeanneret

Frequently Asked Questions

Why did you acquire Sterling Filtration?

It is clear that Brexit was a factor, but we believe the UK is a great market where HIFI could be more active and successful. However, to offer a professional service it was necessary to have an office in the UK with an experienced team and strong processes to serve clients. Sterling Filtration was then the right candidate.

What should I do now as a client of HIFI?

At this stage, it is business as usual. Our team will contact you to discuss and plan the transfer of your purchase orders to Sterling Filtration. Of course, if you have any question you can contact André (HIFI) or Jay (Sterling).

What will be the benefits for the existing HIFI Filter clients?

Our existing HIFI clients will benefit from streamlined logistics, better lead times, and an improved level of service provided by a local team.

What will be the benefits for the existing Sterling Filtration clients?

Sterling filtration clients will get an extended catalogue of about 80’000 filters and around 300 technical experts to help them identify the right products and grow their business. Is Sterling Filtration going to change its name to HIFI-UK? This is probably something we will do in the future, but today, the project is not on our immediate agenda. We believe the name of a company is not important to its success, only the service level provided to the clients. We are fully concentrated in continuing to serve our UK clients with efficiency at a high standard.

Will Sterling Filtration acts as a distribution centre for the UK HIFI clients?

Yes, it is our objective to serve our HIFI UK clients from Sterling Filtration. This will provide great benefits linked to language, currency, logistics and the benefit of a UK contact Hub.

Will invoices be generated from Sterling Filtration?

Yes, this is our objective to invoice UK clients from UK and in British pounds. However, the transition will take some time.

Are you not afraid about the potential competition between Sterling and your current HIFI distributors?

No, we are not. This was a very important subject during the due diligence. Our objective was clearly to avoid any impact on our current partners. After the analysis, we concluded that this will not be an issue.

Will you pass the Sterling Filtration clients to the current distributors of HIFI products?

No, we are not going to transfer Sterling Filtration clients to HIFI distributors. Sterling Filtration will continue to serve its loyal clients.

Is Sterling Filtration able to assume the business volume?

Yes, Sterling Filtration is a solid company able to serve our existing HIFI clients.

Are prices to existing HIFI clients going to change?

As it is difficult to predict the future of Brexit, we believe that prices will be adapted to take into account the logistics and potential extra customs costs. However, existing UK HIFI clients will benefit from preferential prices calculated as accurately as possible to further grow their business. HIFI will not change is strategy to prices and will continue to support our existing clients the best we can.

What will be the level of inventory you will keep in the UK?

Inventory policies will be set to reach a 97% availability in 24h. Of course, analysis of the clients demand may take some time but the HIFI Group has the expertise and experience in such projects.

Will Sterling Filtration have a bigger warehouse?

Yes, indeed, Sterling will have a bigger warehouse.

 

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