Jobs hopes after €21m PCH acquisition

A €21 million acquisition by Cork-based technology manufacturer PCH International will lead to the creation of jobs in Ireland.

Chief executive of the outsourcing manufacturer, Liam Casey said he has high hopes following the company’s acquisition of TNS Distribution.

He would not say how many jobs will be created but he said there will be plenty of opportunities.

Mr Casey said yesterday that Ireland needs to do more to encourage entrepreneurship. He said risk needs to be celebrated in Ireland.

“Entrepreneurship will help us out of this current situation,” he said.

He said entrepreneurs need to “think global” and not just concentrate on the domestic market.

“Now is the right time for this,” he said.

Mr Casey also said any talk of PCH looking towards an IPO later this year is just “rumours” but said that given the size of the company they always have to look at their options.

The news of this acquisition comes after PCH raised more than €18m in February and €21m earlier this month.

TNS Distribution is a European distributor of consumer electronics products and accessories.

The consideration includes an immediate payment of €6m with an earnings-based payment of €5m over three years, based on the performance of TNS Distribution.

An additional payment will be made over the same period based on the overall performance of the PCH Group and will range from between €5 and €10m.

Mr Casey said: “TNS Distribution is a strategic and natural match for PCH and we are very pleased to announce this acquisition. PCH offers world-class product development and supply chain solutions from China to the world, TNS Distribution completes this service offering with a strong distribution network in Europe.

“Together we will be able to improve the service offering to our clients including the world’s leading technology brands who are eager to sell their products into Europe.”

Mr Casey praised TNS founders John McHugh and Ivan Eustace calling them “superb entrepreneurs”.

“This business is very scalable and we expect this acquisition will eventually create new jobs in Ireland. We are excited about the opportunities this investment will bring and the benefits to our clients will be enormous,” said Mr Casey.

PCH is now present on four continents and has more than 1,200 employees, the majority of whom are based in China. In April, it reported a 170% jump in revenues.

Director at Key Capital, John Sheridan said: “This transaction represented a very strong multiple for a quality Irish export business following a highly competitive sale process.

“It demonstrates that there is a strong demand by international capital for high growth Irish businesses run by world class entrepreneurs.”