PCH INTERNATIONAL COULD create a significant number of jobs in Ireland following its acquisition of Dublin-based TNS Distribution in a deal worth up to €21 million.
PCH founder and chief executive Liam Casey said the deal presented a “huge opportunity to create jobs” in Ireland over the next six to 12 months.
Founded in 2000 by Ivan Eustace and John McHugh, TNS has grown into a significant Europe-wide distributor of consumer electronics and accessories for Apple products.
PCH, which has operations in China, Ireland and the US, designs, manufactures and delivers consumer electronics directly to market for some of the world’s biggest brands.
“Putting product development and supply chain together with distribution has never been done before,” said Mr Casey. “It’s creating a new dynamic in the industry.”
PCH will pay an initial price of €6 million in cash, with an additional payment of €5 million over the next three years depending on the performance of TNS.
An additional payment of €5-10 million will be made over the same period depending on the performance of the wider PCH group.
TNS Distribution employs 40 staff in Europe, with a small office in China. Mr McHugh and Mr Eustace are equal shareholders in the business which made a pre-tax profit of €351,000 in the year to the end of June 2010.
Mr Casey said TNS would act as a “trial” of the model but Ireland could become a global distribution hub for PCH. “This could be extremely scalable and Ireland is in the perfect timezone for it between China and the US,” said Mr Casey. Product distribution was all about managing the flow of information to “ensure people get what they want when they want it” and was the type of work at which Ireland is good. TNS would continue to operate as a distinct company within the PCH group. He said PCH was looking at other possible acquisitions in complimentary areas to its business.
Ernst Young managed the transaction on behalf of PCH. Key Capital advised TCH.
PCH employs more than 1,200 staff, the majority based in China. In April, it reported a 170 per cent jump in revenues, up to $413 million. Earlier this month it secured a $30 million investment in its latest round of venture capital investment.
