DCC division agrees deal for French electronics distributor
A DIVISION of the investment conglomerate DCC is to buy a French electronics distributor, it was revealed yesterday.
DCC SerCom, which supplies IT and entertainment products to retailers in Ireland, Britain and France, has agreed terms to buy Comtrade, a Paris-based distributor of consumer electronics and audio visual products to the French retail sector.
The deal will go through for an initial consideration of €11.4m with a maximum deferred consideration of €9.8m.
The acquisition is expected to be completed by the end of October.
Under the terms of the deal, DCC will acquire 74pc of Comtrade shares with the remainder being based on Comtrade's results over the next three years.
DCC said the acquisition was "a further step in DCC SerCom's strategy to extend its product, customer and market coverage in retail distribution".
DCC's chief executive Tommy Breen said the deal was a natural move for his company.
"There is an excellent strategic fit between Comtrade and DCC SerCom's retail distribution business in France, Banque Magnetique. The acquisition will strengthen our position in French retail consumer electronics distribution, extending DCC SerCom's product and customer coverage in this market," he said.
Comtrade distributes products such as iPod docking stations, speakers and portable hard drives from suppliers to major retailers in France and to a wide range of internet, supermarket and specialist electronics retailers.
Last year, it recorded earnings before interest and taxes of €3m on revenues of €65.2m.
DCC was down marginally at €19.18 in Dublin.