DCC wants to tune up its tech business in North America.
The Canadian company makes speakers, headphones and other audio equipment under its own label as well as producing equipment for third parties.
DCC is a logistics and support business with global interests. Yesterday (27 September), the FTSE 100 company raised €680m in a share placement arranged by JP Morgan and Davy Stockbrokers. The placement of 10pc of the company’s issued share capital gave DCC a market cap of €6.9bn.
The Irish company is understood to have spent £900m on acquisitions in the past year. In July, for example, it acquired New York audio-visual company Stampede, a company with revenues of $280m, as well as UK audio and mobile accessory player Kondor, which generates revenues of £110m a year. In February, DCC bought Elite One Nutritional Services for a market value of $50m, to pave its way into the US healthcare market.
In 2018, DCC generated revenues of £14.3bn and profits of £383.4m.
The foray into audio tech is an interesting departure for the Irish company, which operates four divisions: petrol and gas, retail, healthcare, and technology.
“The acquisition of Jam significantly strengthens DCC Technology’s position in the North American market,” chief executive Donal Murphy said in a statement.
Montreal-based Jam focuses on making electronic products in the market of consumer electronics, musical instruments, and pro audio and lighting. It was named one of Canada’s Best Managed Companies for 2018.