DCC PLC DCC Technology announces acquisitions in US and UK (5587U)

TIDMDCC

RNS Number : 5587U

DCC PLC

13 July 2018

13 July 2018

DCC Technology announces acquisitions in the US and UK

DCC plc, the leading international sales, marketing and support services group, announces that DCC Technology has acquired Stampede Global Holdings Inc. ('Stampede'), a specialist distributor of professional audio-visual ('Pro AV') products and solutions. DCC Technology also recently acquired Kondor Limited ('Kondor'), a provider of category management services for audio and mobile accessory products to the retail channel in the UK and Continental Europe.

Stampede

Stampede, which is headquartered in Buffalo, New York, supplies Pro AV products including large format display, projectors, lamps, drones and accessories to system integrators, value-added resellers, retailers and etailers in the US, Canada and the UK. Stampede also provides Pro AV solutions to the hospitality, government, corporate and education sectors. Stampede partners with, and supplies products from, leading Pro AV brands such as Christie, Epson, LG, NEC, Samsung and Sharp. Stampede recorded revenue of $280 million in the year ended 31 December 2017 and employs approximately 210 people.

The acquisition of Stampede, one of the leading specialist Pro AV distributors in the US, represents DCC Technology's first acquisition in North America and is consistent with DCC Technology's strategy to extend the geographic footprint and product range of its successful and growing Pro AV business, strengthening its partnership with existing suppliers, while also broadening its base of customers and suppliers.

Kondor

Kondor, based in the South of England, distributes audio and mobile accessory products to etailers, retailers and mobile operators in the UK and Continental Europe. It partners with mobile and accessory brand owners and has an extensive portfolio of own-brand products, complementing its third-party brands. Kondor also provides outsourced category management services, including category/brand management, marketing support, promotional display, brand support and advanced stock solutions, to the retail channel. Kondor generated revenue of GBP110 million in the year ended 31 December 2017 and employs approximately 250 people.

The acquisition of Kondor is highly complementary to DCC Technology's existing operations and strengthens its position as one of the leading omnichannel distribution and supply chain businesses in Europe.

The combined initial enterprise value of Stampede and Kondor is c.GBP110 million. DCC expects the acquisitions to generate a return on capital employed of c.15% in the first full year of ownership.

Donal Murphy, Chief Executive of DCC plc, said today:

"The acquisition of Stampede significantly strengthens DCC Technology's position in the attractive and growing Pro AV market and also provides DCC Technology with a platform for growth and development in North America. The acquisition of Kondor further enhances both DCC Technology's service proposition and its market position, where it has grown to be a leading service provider to the retail channel in Europe."

For reference:

Donal Murphy, Chief Executive

Kevin Lucey, Head of Capital Markets

Telephone: [phone]

Email: [e-mail]

Web: www.dcc.ie

Powerscourt (Media)

Lisa Kavanagh / Victoria Palmer-Moore

Telephone: [phone]

Email: [e-mail]

About DCC plc

DCC is a leading international sales, marketing and support services group with a clear focus on performance and growth. It operates through four divisions: LPG, Retail & Oil, Healthcare and Technology.

DCC is an ambitious and entrepreneurial business operating in 17 countries, supplying products and services used by millions of people every day throughout Europe. Building strong routes to market, driving for results, focusing on cash conversion and generating superior sustainable returns on capital employed enable the Group to reinvest in its business, creating value for its stakeholders.

Headquartered in Dublin, employing approximately 11,000 people, DCC's four divisions are:

-- DCC LPG - a leading LPG sales and marketing business with operations in Europe, Asia and the US and a developing business in the retailing of natural gas and electricity;

-- DCC Retail & Oil - a leader in the sales, marketing and retailing of transport and commercial fuels, heating oils and related products and services in Europe;

-- DCC Healthcare - a leading healthcare business, providing products and services to healthcare providers and health and beauty brand owners; and

-- DCC Technology - a leading sales, marketing and services partner for global technology brands.

DCC plc is listed on the London Stock Exchange and is a constituent of the FTSE 100. In its financial year ended 31 March 2018, DCC generated revenue of GBP14.3 billion and operating profit of GBP383.4 million.

About DCC Technology

DCC Technology is a leading route-to-market and supply chain partner for global technology brands.

DCC Technology, which principally trades under the Exertis brand, provides a broad range of consumer and business technology products and services to customers across the consumer, B2B and enterprise markets. It now operates in 16 countries with its principal operations in the UK, Ireland, France, Sweden, the US, Canada and the United Arab Emirates.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

ACQDMGMNKFFGRZG

(END) Dow Jones Newswires

July 13, 2018 02:00 ET (06:00 GMT)