DCC has increased its stake in International Translation and Publishing (ITP), the Bray based translator for the computer industry, from 44.5 per cent to 90 per cent.
The stake is held through its 87.3 per cent owned subsidiary Printech International, so its effective stake in ITP is now 78.6 per cent.
The consideration consists of an initial payment of £297 000 plus an earn out. The total cost to DCC is likely to be in the region of £1 million which places a value of £2.4 million on ITP.
Forbairt owns the remaining 10 per cent of ITP. Asked if DCC would acquire that outstanding holding, Mr Tommy Breen DCC's associate director, said: "We are happy to have them there."
The extra holding in ITP was purchased from the management team lead by Mr Finbarr Power, founder and chief executive, Mr Tom Grogan, managing director, and other managers. DCC gained the stake by exercising an option. The initial 44.5 per cent was purchased for around £300,000 which was a low effective price said Mr Breen.
ITP employs 160 - mostly in Bray - and has experienced strong growth due to an expansion of business and the opening of new markets in eastern Europe and Asia.
It now has offices in the US Singapore, Belgium, and through associate companies, has outlets in India, France, Spain and Italy.
ITP generated a net profit, after tax and preference dividends, of £305,531 on a turnover of £8.2 million in the year ended March 31st 1996.
Mr Breen said that sales should rise by 35 per cent to 40 per cent this year and gross margins should be maintained.
ITP is also expected to gain benefits from the new outlets which it established last year.
The earn out will be based on a 6.5 times multiple of average earnings after tax and preference dividends, for the two years ending March 31st 1997, less the £297,262 initial payment.
The initial payment consisted of £151,092 in 58,791 DCC shares and the balance in cash and loan stock. If earnings grow by 40 per cent, DCC will have to pay out an extra £787,000.
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