Business support services group DCC is to acquire French consumer electronics firm Comtrade.
DCC will initially buy a 74 per cent stake in the Paris based firm for €11.4 million. The remaining shares will be bought based on Comtrade's results up to March 31st, 2013. The company said the deferred payments could be worth €9.8 million.
The acquisition, which must be approved by French authorities, is part of DCC SerCom's move to extend its market share in the retail distribution sector.
Comtrade distributes a range of products including iPod and MP3 docking stations, speakers and portable hard drives. It recorded operating profit of €3 million in the financial year ended December 31st, 2009, on revenues of €65.2 million.
"There is an excellent strategic fit between Comtrade and DCC SerCom's existing retail distribution business in France, Banque Magnetique," said DCC chief executive Tommy Breen.
"The acquisition of Comtrade will significantly strengthen our position in French retail consumer electronics distribution, extending DCC SerCom's product and customer coverage in this market."