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DCC confident of another year of growth as it unveils two acquisitions

Stampede represents DCC subsidiary DCC Technology's first acquisition in North America
Mergers & acquisitions
DCC has grown substantially in recent years and now has significant operations across 17 countries

Shares in DCC Plc (LON:DCC) surged on Friday after the sales, marketing and support services group issued an upbeat trading statement.

At the company’s annual general meeting DCC said the current financial year would be another year of profit growth and development.

READ DCC reports strong full-year performance after notching up highest level of acquisition spend in its history​

Group profit for the first quarter – the three months to the end of June – was in line with expectations and, as expected, well ahead of the previous year.

The company also announced two acquisitions: Stampede Global Holdings, a specialist distributor of professional audio-visual products and solutions, and Kondor, a provider of category management services for audio and mobile accessory products to the retail channel in the UK and Continental Europe.

The company was being coy about the prices paid but said the combined initial enterprise value of Stampede and Kondor is around £110mln.

DCC expects the acquisitions to generate a return on capital employed of roughly 15% in the first full year of ownership.

"The acquisition of Stampede significantly strengthens DCC Technology's position in the attractive and growing Pro AV market and also provides DCC Technology with a platform for growth and development in North America,” said Donal Murphy, the chief executive officer of DCC.

“The acquisition of Kondor further enhances both DCC Technology's service proposition and its market position, where it has grown to be a leading service provider to the retail channel in Europe," he added.

Shares in DCC were up 4.3% at 7,195p.

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DCC Plc Timeline

Article
December 29 2015

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