Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

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.

View full DCC profile View Profile

DCC Plc Timeline

December 29 2015

Related Articles

Ryanair plane
August 23 2018
Two new directors have been appointed, though the group is still looking for a replacement for chairman Iain Ferguson
The river Thames
June 08 2018
No longer focused so much on drone technology, the high-tech survey and inspection specialist is so changed that it probably should change its name but management would rather spend the money growing the business
June 06 2018
Financial services have been especially strong and driven by fears over cybersecurity ...

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use