25th Mar 2020 10:26
(Alliance News) - DCC PLC on Wednesday said it has bought US-based effervescent nutritional products manufacturer Amerilab Technologies Inc.
DCC described Amerilab, which is based in the state of Minnesota, as "a specialist provider of contract manufacturing and related services in effervescent nutritional products".
Amerilab has 125 employees and annual revenue of around USD68 million. DCC's acquisition is based on a USD85 million enterprise value, with the business expected to generate returns consistent with DCC's existing Health & Beauty business within two years.
The majority of the consideration paid for Amerilab, which was not disclosed, was paid in cash using DCC's resources. The balance represents "contingent and earn-out related consideration".
On Tuesday next week, the end of its financial year, DCC expects to have more than GBP1.5 billion in cash resources plus GBP400 million of committed debt facilities.
DCC Chief Executive Donal Murphy said: "DCC Health & Beauty Solutions provides high-quality services to leading health and beauty brand owners and direct sales organisations. The acquisition of Amerilab significantly enhances our existing presence in the US market. Amerilab will work closely with Ion, Elite One Source and the businesses in Europe to cross-sell the full breadth of DCC Health & Beauty Solutions' comprehensive service offering."
Shares in DCC were down 0.1% at 4,883.00 pence in London on Wednesday morning.
By Anna Farley; [email protected]
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