DCC buys drinks distributor for €9.6m

DCC has purchased wine and spirits distribution business FindlaterGrants from C&C Group for an estimated €9.6 million.

Frank Fenn, DCC managing director said the purchase fee was “equivalent to the net operating assets” of FindlaterGrants, plus a goodwill payment of €1.5 million.

FindlaterGrants distributes wine and spirits brands to retailers, off licences, restaurants and hotels.

Mr Fenn said DCC continued to seek similar takeover opportunities in the Irish and British wine and spirits markets "as well as growing organically".

Despite a marked slowdown in Irish consumer spending Mr Fenn said the wine market "has room to grow" and,  current short-term difficulties aside, DCC saw very strong future opportunities in the sector.

The merger of FindlaterGrants with DCC's Irish wine distribution business Woodford Bourne would "generate significant commercial and operating synergies" with overall revenues of approximately €50 million, Mr Fenn said.

At the end of its financial year at the end of February FindlaterGrants traded at approximately breakeven on revenues of €33 million.

While all 32 FindlaterGrants employees will transfer to DCC, Mr Fenn said over the coming years "we will be looking at synergies".

He declined to say whether DCC had faced competition for the purchase.