DCC steals a march on rivals with buying spree
FTSE 100 support services company DCC has spent £110m buying two technology distribution companies as it seeks to take on its rivals in the sector.
The company has acquired New York-based Stampede, which supplies audio-visual products including projectors, drones and displays to retailers, schools and hotels in the US, Canada and the UK.
The purchase is the first in North America for DCC’S technology division, as it plots to steal a march on rivals and snap up lucrative contracts to become a supplier to some of the world’s largest institutions.
Donal Murphy, the company’s chief executive, said it “provides DCC Technology with a platform for growth in North America”.
DCC also announced that it has bought Kondor, an audio and mobile accessory distributor based in Dorset. The company employs around 250 people and last year made £110m.
DCC said the purchase was “highly complementary” to its existing operations. The company’s technology arm currently provides products and services to business across Europe and the Middle East, including markets in which Kondor already operates.
DCC is currently in a period of record spending on acquisitions, moving into new markets on the back of solid growth elsewhere. In February it bought Elite One Source Nutritional Services, a Montana-based manufacturer of tablets, capsules and powders for consumer healthcare, for $50m (£35m).
Separately, the company said in a trading update yesterday that operating profit in the first quarter was in line with forecasts, and was considerably higher than last year’s performance.
Shares in DCC ended up 3.7pc at £71.55.