15th Jun 2005 07:00
DCC PLC15 June 2005 DCC Acquires Leading DVD and Computer Games Business DCC plc, the value added sales, marketing and business support services group,has reached agreement, subject to clearance from the Competition Authority inIreland, to acquire 100% of Pilton Company Limited ("Pilton"). Pilton is aleading distributor of DVDs, computer games and other products to the homeentertainment market in Ireland with a developing business in Britain. Pilton is a holding company for a number of trading subsidiaries, the principalof which are:- • NCV Distribution Limited, a Dublin based company, which is the leading distributor of DVDs and videos to the Republic of Ireland market. • VHS Distribution Limited, a Belfast based company, which is the leading distributor of DVDs and videos in Northern Ireland with a growing business in Britain. • CGS Distribution Limited, a Dublin based company, which is a leading distributor of computer games in Ireland. In its financial year to 31 January 2005, Pilton had sales of €72 million andpre-tax profits of €6.1 million. Pilton achieved strong profit growth in recentyears on the back of the growth in the home entertainment market and inparticular the growth in DVD sales. Its net tangible assets at 31 January 2005were €16.2 million. Pilton employs 109 people. The consideration for Pilton (inclusive of Pilton's surplus net cash of €12.88million) will comprise an initial cash payment of €35.38 million which, net ofcash balances, is a consideration of €22.5 million and three further paymentsdepending on results achieved in each of the three years to 31 March 2008. Themaximum further consideration is €20 million. The origins of the present Pilton Group date back to 1980 when NCV entered thevideo distribution business. The main shareholder is the family interests ofNicholas Furlong (57), a certified accountant, who has led the very successfuldevelopment of the business and will continue as its Managing Director. Pilton will become part of DCC's IT distribution division and will becomplementary to its subsidiary Gem Distribution which has been growing stronglyin the distribution of entertainment and consumer digital products to the retailsector in Britain. Jim Flavin, Chief Executive/Deputy Chairman of DCC plc said today: "The acquisition of Pilton will expand the product range and retail market reachof DCC's IT distribution division within the growing market for entertainmentand consumer digital products. It will build on DCC's position as a leadingdistributor of entertainment and consumer digital products to the retail channelin Britain, which in the year to 31 March 2005 accounted for 42% of thedivision's profits". For reference:Jim Flavin, Chief Executive/Deputy Chairman - DCC plcDonal Murphy, Managing Director - IT DistributionKieran Conlon, Investor Relations Manager Tel: +353 1 2799 400Email: [email protected] For Editors: DCC is a sales, marketing and business support services group focused on theenergy, IT, healthcare, food & beverage and environmental markets, operatingprincipally in Britain and Ireland. In its latest financial year to 31 March2005, DCC had sales of €2.7 billion and operating profits of €131.5 million.DCC's shares are traded on the Irish and London Stock Exchanges. DCC's IT distribution division is a leading player in the sales and marketing ofa broad range of enterprise and consumer technology products in Britain andIreland and a distributor of enterprise products in Continental Europe. Thedivision generated operating profits of €27.5 million on sales of €878.2 millionin the year ended 31 March 2005. For further information please visit www.dcc.ie. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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