A round-up of today's other stories in brief.
DCC buys UK firm for initial cost of €16m
DCC's healthcare division has bought British firm Squadron Medical for an initial €16 million, but this includes cash reserves in Squadron of €3.5 million.
The group will pay further consideration of up to €11.8 million, based on the profits earned in the next four financial years, ending in March 2012.
Squadron procures and supplies medical and surgical products to hospitals. In its latest financial year, ending in August 2007, it had sales of €37 million and adjusted operating profits of €2.6 million. The value of the net tangible assets acquired at completion, including the net cash, was €7.4 million.
DCC executive chairman Jim Flavin said Squadron was well-positioned for continued strong growth in the British hospital supply sector, and it would work closely with DCC's healthcare subsidiary Fannin.
Analyst John Sheehan at NCB Stockbrokers said the purchase price was "another well-bought add-on" for DCC, giving the company an attractive initial multiple of 4.8 times the operating profit.
Greenspan upbeat on US economy
Former Federal Reserve chairman Alan Greenspan said yesterday that the US economy's great flexibility had reduced the risk of recession from the subprime mortgage crisis.
In remarks to a financial audience in Oslo, he also predicted further falls in US housing prices, saying the market was some way from its selling climax.
The US corporate sector, he said, was faring "remarkably well", as were economies in other parts of the world, such as in Asia and Latin America.
But he warned that the US housing market was headed for further decline, undermining already battered credit markets and curbing the "wealth effect" for home-owners. - (Reuters)
Newcourt acquires BDS Security
Services and recruitment group, Newcourt, is set to boost its security business with an acquisition that will add €13 million a year in revenues.
The company said yesterday that it has bought smaller rival, BDS Security Management. BDS employs 400 staff in guarding and electronic security in Cork and Dublin. Newcourt said yesterday that BDS had yearly revenues of €13 million.
The deal was organised through Newcourt subsidiary, Federal Security Solutions. BDS will trade as part of Federal Security Solutions, which employs 2,400 people across Ireland.
Federal says it is on target to generate revenues of €70 million this year. The BDS deal will increase Federal Security's employment numbers to 2,800, Newcourt said yesterday.
Newcourt's security and support services division chief executive, Hugh O'Neill, said BDS provides guards, mobile patrols, electronic monitoring and associated services to its clients.
Newcourt is listed on the Dublin stock market.
Commodities rally on bullish buying
Commodities rallied yesterday as bullish buying boosted metals such as gold and copper, and strong exports drove up crops like soybeans, wheat and corn, despite thin trading after the US Thanksgiving holiday.
Crude oil was up, although off the $100-a-barrel target, with Wednesday's record of $99.29 holding as its closest attempt at that level.
US Nymex crude rose 89 cents to settle at $98.18 a barrel, a record closing price. Brent rose $1.26 to $95.76 a barrel on the London-based ICE Futures Europe exchange. - (Reuters)
