DCC to buy Paris-based supplier of electronics for initial sum of €11.4m

DCC IS to acquire French electronics distributor Comtrade for €11.4 million, with a deferred consideration of up to €9.8 million to be paid over three years.

Comtrade, a Paris-based company with 65 employees, supplies electronic products such as iPods and MP3 accessories to major retailers in France.

It posted an operating profit of €3 million for the year ended December 31st 2009, with revenue of €65.2 million. The company had net tangible operating assets of €6.4 million.

The acquisition, which will see DCC acquire 74 per cent of Comtrade’s share capital, will strengthen the presence of DCC’s SerCom division in the French retail market.

In 2007, the company acquired the French retail distribution business Banque Magnetique.

DCC chief executive Tommy Breen said the acquisition would expand DCC SerComs product and customer coverage in the French retail market.

The deal, which is subject to approval by French competition authorities, is in line with DCC’s stated strategy of expansion through bolt-on acquisitions.

Last month, DCC announced it had spent €36 million in the first quarter of its financial year purchasing Pearts, a medium-sized oil distributor in the north of England, and two oil storage operations in Scotland.

In June, DCC’s healthcare division sold its mobility and rehabilitation business for €30 million.

DCC made a profit of €192.8 million in the 12 months ended March 31st last. This amounted to a 12. 8 per cent jump on a constant currency basis.

The listed company comprises five separate divisions: energy, which accounts for 60 per cent of overall operating profits; SerCom, the company’s IT and entertainment distribution unit; healthcare; environment; and food and beverages.

DCC SerCom posted a 1.7 per cent rise in profits to €40.8 million last year, mainly due to significant profit growth in retail and reseller distribution in Britain.

In an interim management statement last month, the company said it expects operating profits in its current financial year, which ends on March 31st, 2011, to increase by 5 per cent over last year and for earnings per share to be “modestly ahead” of 2010.