DCC to dispose of Enterprise distribution business

RNS Number : 6902A

DCC PLC

03 April 2012

 



 DCC to dispose of its Enterprise distribution business

DCC plc has agreed to dispose of Altimate Group SA ("Altimate"), DCC SerCom's Enterprise distribution business, to Arrow Electronics Inc ("Arrow"), a global provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions. The disposal is conditional on competition clearance from the European Commission.

Altimate sells a range of data management, security and virtualisation software, servers and storage products which are typically utilised in medium-sized and large organisations and Altimate's customers are principally based in France, Iberia, Benelux and Britain. The enterprise value for the transaction is €48.1 million, of which €41.0 million is payable in cash on completion. In addition, Arrow will take on certain deferred acquisition consideration obligations of Altimate which are currently recorded in the books of Altimate at €7.1 million.

The disposal is expected to give rise to a non-cash exceptional loss for DCC of approximately €8.0 million resulting from the non-recovery of a portion of the goodwill arising since the acquisition of Altimate in 2000. Altimate generated an operating profit of €3.7 million in the financial year ended 31 March 2011.

Tommy Breen, Chief Executive of DCC, said today:

"The disposal of Altimate is consistent with our strategy to concentrate the focus of DCC SerCom's distribution activities on its Retail and Reseller distribution businesses, which have strong leadership positions in Britain, Ireland and France and significant opportunities for further organic and acquisition growth."

 

For reference:

Tommy Breen, Chief Executive, DCC plc

Niall Ennis, Managing Director, DCC SerCom

Redmond McEvoy, Investor Relations Manager, DCC plc

Telephone: + 353 1 2799400

Email: [e-mail]

Web: www.dcc.ie  

 

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