Last checked at 23 Aug 2010 07:00
DCC to acquire a leading distributor of consumer electronic and audio visual products to the French retail sector
DCC plc, the business support services group, has reached conditional agreement to acquire Comtrade SA ("Comtrade"), a leading distributor of consumer electronic and audio visual products to the retail sector in France. Comtrade is based in Paris and has 65 employees. The acquisition is subject, inter alia, to clearance from the French competition authorities.
Comtrade distributes a broad range of products including iPod and MP3 docking stations, speakers and portable hard drives from suppliers such as Altec Lansing, Western Digital and iHome to major retailers such as Carrefour, E.Leclerc, Auchan and FNAC and to a wide range of internet, supermarket and specialist electronics retailers. This acquisition is a further step in DCC SerCom's strategy to extend its product, customer and market coverage in Retail distribution.
Comtrade's operating profit for its financial year ended 31 December 2009 was €3.0 million on revenues of €65.2 million. At 31 December 2009, Comtrade had net tangible operating assets of €6.4 million.
DCC is to acquire an effective 74% of the share capital of Comtrade on completion which is expected to take place in October. The remaining shares will be acquired based on Comtrade's trading results for each of the three years ending 31 March 2013. The initial consideration payable, net of average cash acquired, is €11.4 million. The maximum deferred consideration payable is €9.8 million.
Tommy Breen, Chief Executive of DCC plc, said today:
"There is an excellent strategic fit between Comtrade and DCC SerCom's existing retail distribution business in France, Banque Magnetique. The acquisition of Comtrade will significantly strengthen our position in French retail consumer electronics distribution, extending DCC SerCom's product and customer coverage in this market."
For reference:
Tommy Breen, Chief Executive
Niall Ennis, Managing Director, DCC SerCom
Redmond McEvoy, Investor Relations Manager
Telephone: +353 1 2799 400
Email: investorrelations@dcc.ie