DCC has agreed to acquire Comtrade for up to €21.2 million (£17.3 million).
Business support services group DCC has agreed to acquire Comtrade for up to €21.2 million (£17.3 million).
Under the terms of the deal an initial payment of €11.4 million will be followed by a deferred sum over the next three years that has been capped at €9.8 million. The acquisition is subject to regulatory approval in France.
Comtrade is a distributor of consumer electronic products across France to retailers including Carrefour and FNAC. The company is based in Paris and has 65 employees. In 2009 Comtrade declared an operating profit of €3 million on a turnover of €65.2 million and had net assets of €6.4 million.
Dublin-based DCC is a sales and marketing, distribution and support services group. The company’s IT and entertainment retail division DCC SerCom operates in Ireland, Poland, China and the US and employs 1,340 staff. In the year to March 2010 DCC declared an operating profit of €192.8 million on a turnover of €6.7 billion.
Tommy Breen, chief executive of DCC, says: ‘There is an excellent strategic fit between Comtrade and DCC SerCom’s existing retail distribution business in France, Banque Magnetique. The acquisition of Comtrade will significantly strengthen our position in French retail consumer electronics distribution, extending DCC SerCom’s product and customer coverage in this market.’