Marketing and business support group DCC has acquired DVD and computer games distributor Pilton Company for an initial €35.38 million.
However, because Pilton has cash reserves that will transfer to DCC post-acquisition, the net price of the acquisition comes to an initial €22.5 million, said DCC.
It added that it will make a further three payments to Pilton of no more than €20 million depending on the results it achieves in each of the three years to 2008.
DCC’s chief executive 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".
Mr Flavin said: "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 31st 2005 accounted for 42% of the division's profits".
Pilton is a holding company for a number of trading subsidiaries including NCV Distribution Limited, a Dublin based company, which is the leading distributor of DVDs and videos to the Republic of Ireland market.
There is also VHS Distribution Limited, a Belfast based company, which is the leading distributor of DVDs and videos in Northern Ireland with a growing business in Britain and CGS Distribution Limited, a Dublin based company, which is a leading distributor of computer games in Ireland.
In its last financial year, Pilton had sales of €72 million and pre-tax profits of €6.1 million.