DCC sells Altimate to Arrow ECS for €48m
IRISH firm DCC has agreed to sell its enterprise distribution unit Altimate for just over €48m to Arrow ECS.
Altimate sells computer equipment in France, Iberia, Belgium and Britain, while Arrow ECS is a division of Colorado-headquartered Arrow Electronics. Arrow has also agreed to assume certain deferred acquisition consideration obligations of Altimate, which are valued in Altimate's books at €7.1m.
The disposal will also result in a non-cash exceptional loss for DCC of about €8m due to the non-recovery of a portion of the goodwill arising since the acquisition of Altimate in 2000.
Altimate made a €3.7m profit in the financial year ended in March 2011 and has annual sales of about €257m. Altimate chief executive Patrice Arzillier said that the company boosted its sales by 20pc in the financial year that has just ended.
DCC chief executive Tommy Breen said the sale was consistent with the group's strategy to "concentrate the focus" of DCC Sercom's distribution activities on its retail and reseller distribution businesses.
Analyst David O'Brien at Goodbody Stockbrokers said he viewed the deal positively.