DCC’s shares soar nine per cent after £462m Almo acquisition
DCC Technology has acquired Almo Corporation (Almo) in a £462m deal, doubling the size of its North American business.
The deal resulted in a healthy bounce in its parent company’s – DCC – share price yesterday, which soared 8.97 per cent on the FTSE 100.
The transaction is the Irish international sales, marketing and support services group’s largest acquisition to date.
Almo is a US sales and distribution business, operating across business-to-business and consumer channels.
It focuses on consumer appliances, electronics and lifestyle products, with annual revenue of approximately £1bn.
In its latest financial year, Almo reported underlying EBITDA of £57m and gross assets totalling £310m.
The business was acquired from the Chaiken family, who have owned and managed Almo since its foundation 75 years ago.
DCC has now committed £550m to acquisitions during its current financial year.
Following the deal, DCC Technology expects to generate full-year revenues of approximately £1.7 bn in the region.
It could also generate a 15 per cent return on capital within three years.
Donal Murphy, chief executive of DCC said: ”We are very pleased with the group’s progress since we first entered the North American market in 2018, where we have built substantial and successful businesses across the healthcare, technology and energy sectors. We have great opportunity for future expansion, given the platforms we’ve created, the attractive growth dynamics and the scope for consolidation.”