DCC cleared to buy entertainment company Pilton

ISEQ-listed business-services company DCC has reached agreement to acquire 100% of home entertainment company Pilton.

Pilton distributes DVDs, computer games and other entertainment products in Ireland and has a developing business in Britain.

In its financial year to January 31, 2005, Pilton had sales of €72m and pre-tax profits of €6.1m. Its net tangible assets on January 31 were €16.2m and it employs 109 people.

The price for Pilton (inclusive of Pilton's surplus net cash of €12.88m) will include an initial cash payment of €35.38m which is a consideration of €22.5m and three further payments depending on results achieved in each of the three years to March 31, 2008.

The maximum further consideration is €20m.

Pilton’s main shareholder is the family of Nicholas Furlong, a certified accountant who has led the development of the business and will continue as its managing director.

It will become part of DCC's IT-distribution division, working closely with DCC subsidiary Gem Distribution, which distributes entertainment and consumer digital products to the retail sector in Britain.

Pilton is a holding company for a number of trading subsidiaries, the principal of which are NCV Distribution Limited, VHS Distribution Limited and CGS Distribution Limited.

DCC chief executive and deputy chairman Jim Flavin said: "The acquisition of Pilton will expand the product range and retail market-reach of DCC's IT-distribution division within the growing market for entertainment and consumer digital products.

“It will build on DCC's position as a leading distributor of entertainment and consumer digital products to the retail channel in Britain, which in the year to March 31, 2005, accounted for 42% of the division's profits".