DCC acquires French electronics distributor

Business support services group DCC has reached conditional agreement to acquire Banque Magnetique SAS, a Paris-based French distributor of consumer electronic products and IT peripherals to the French retail market.

The business is being sold by Fayrewood. The acquisition is subject, inter alia, to clearance from the French competition authorities.

The agreed cash cost of the acquisition will be €38.1m, made up of consideration of €12.5m and net debt of €25.6m.

Banque Magnetique’s operating profit before group charges, goodwill amortisation and exceptional items for its financial year ended December 31, 2006 was €4.5m and it is expected to achieve operating profits of approximately €5.6m in its financial year to December 31, 2007.

Sales in 2006 were €245m. At 31 October 2007, Banque Magnetique had net operating assets of approximately €38.6m.

Banque Magnetique distributes a broad range of consumer electronic products and IT peripheral products and services to a wide range of retail customers, including internet, supermarket and specialist electronics retailers.

Executive chairman of DCC Jim Flavin, said today: "Banque Magnetique … has experienced strong growth over the past three years. The acquisition will significantly strengthen DCC’s position in European retail consumer electronics distribution.

"Banque Magnetique will be acquired by Gem Distribution, DCC’s subsidiary, which is the leading distributor of consumer electronic products and IT peripherals in the British market."