DCC strikes discord with its purchase of the Jam Group
DCC managed to hit the wrong note with its $170m (£130m) acquisition of the Jam Group today, sending shares down four per cent over the course of the afternoon.
The FTSE 100 support services group placed up to 10 per cent of its share capital to fund the purchase, but investors weren’t in tune with its thinking.
Jam, which leads marketing and distribution for brands like guitar amp maker Marshall, will increase Dublin-based DCC’s versatility as it expands globally, its new owner said.
Donal Murphy, DCC chief executive, said: “The acquisition of Jam significantly strengthens DCC Technology’s position in the North American market. DCC Technology now has approximately $600m in revenue in North America with a strong, service-led, specialist focus on professional audio and visual, musical instruments and consumer electronics.
“The growing and fragmented nature of these markets will provide DCC Technology with further opportunities for development in the coming years.”