RNS Number:5815N
DCC PLC
15 June 2005
DCC Acquires Leading DVD and Computer Games Business
DCC plc, the value added sales, marketing and business support services group,
has reached agreement, subject to clearance from the Competition Authority in
Ireland, to acquire 100% of Pilton Company Limited ("Pilton"). Pilton is a
leading distributor of DVDs, computer games and other products to the home
entertainment market in Ireland with a developing business in Britain.
Pilton is a holding company for a number of trading subsidiaries, the principal
of which are:-
* NCV Distribution Limited, a Dublin based company, which is the leading
distributor of DVDs and videos to the Republic of Ireland market.
* VHS Distribution Limited, a Belfast based company, which is the leading
distributor of DVDs and videos in Northern Ireland with a growing business
in Britain.
* CGS Distribution Limited, a Dublin based company, which is a leading
distributor of computer games in Ireland.
In its financial year to 31 January 2005, Pilton had sales of Euro72 million and
pre-tax profits of Euro6.1 million. Pilton achieved strong profit growth in recent
years on the back of the growth in the home entertainment market and in
particular the growth in DVD sales. Its net tangible assets at 31 January 2005
were Euro16.2 million. Pilton employs 109 people.
The consideration for Pilton (inclusive of Pilton's surplus net cash of Euro12.88
million) will comprise an initial cash payment of Euro35.38 million which, net of
cash balances, is a consideration of Euro22.5 million and three further payments
depending on results achieved in each of the three years to 31 March 2008. The
maximum further consideration is Euro20 million.
The origins of the present Pilton Group date back to 1980 when NCV entered the
video distribution business. The main shareholder is the family interests of
Nicholas Furlong (57), a certified accountant, who has led the very successful
development of the business and will continue as its Managing Director.
Pilton will become part of DCC's IT distribution division and will be
complementary to its subsidiary Gem Distribution which has been growing strongly
in the distribution of entertainment and consumer digital products to the retail
sector in Britain.
Jim Flavin, Chief Executive/Deputy Chairman of DCC plc said today:
"The acquisition of Pilton will expand the product range and retail market reach
of DCC's IT distribution division within the growing market for entertainment
and consumer digital products. It will build on DCC's position as a leading
distributor of entertainment and consumer digital products to the retail channel
in Britain, which in the year to 31 March 2005 accounted for 42% of the
division's profits".
For reference:
Jim Flavin, Chief Executive/Deputy Chairman - DCC plc
Donal Murphy, Managing Director - IT Distribution
Kieran Conlon, Investor Relations Manager
Tel: +353 1 2799 400
Email: investorrelations@dcc.ie
For Editors:
DCC is a sales, marketing and business support services group focused on the
energy, IT, healthcare, food & beverage and environmental markets, operating
principally in Britain and Ireland. In its latest financial year to 31 March
2005, DCC had sales of Euro2.7 billion and operating profits of Euro131.5 million.
DCC's shares are traded on the Irish and London Stock Exchanges.
DCC's IT distribution division is a leading player in the sales and marketing of
a broad range of enterprise and consumer technology products in Britain and
Ireland and a distributor of enterprise products in Continental Europe. The
division generated operating profits of Euro27.5 million on sales of Euro878.2 million
in the year ended 31 March 2005.
For further information please visit www.dcc.ie.
This information is provided by RNS
The company news service from the London Stock Exchange
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