Acquisition

DCC PLC
07 July 2004



7 July 2004
                     DCC to uncork growth in UK wine market

DCC plc's Food & Beverage division reached agreement yesterday, subject to
clearance of the Competition Authority in Ireland, to acquire Bottle Green
Limited, a UK based (Leeds) wine sales and marketing business with a 5% share 
of UK off trade wine market volume. The off trade market accounts for 
approximately 80% of the total off and on trade market in the UK.

Since being established in 1990 by Jerry Lockspeiser (who will continue as
Managing Director of the business), Bottle Green has developed an excellent
reputation as a responsive and knowledgeable wine company with a particularly
good understanding of the changing needs of multiple off trade customers. 
Bottle Green has a strong New and Old World supplier base producing a range of 
company owned brands, private label and estate branded wines from France, 
Hungary, Australia, Chile, California, Spain, South Africa, Argentina and 
other countries around the world.

Over the last four years Bottle Green has also developed and launched a number
of its own highly successful and distinctive brands having identified the
opportunity to make wine more accessible through less complicated, clearly
presented propositions that offer very good, consistent quality and value for
money. The most successful of these brands are French Connection and Riverview.

Bottle Green is currently generating operating profits of approximately Stg£2
million (Euro 3 million) per annum and the company is expected to have net cash
in bank of approximately Stg£4.7 million (Euro 7.0 million) at completion. The
initial consideration for the business, inclusive of its cash balance will be
Stg£13.1 million (Euro 19.5 million) resulting in a cost of Stg£8.4 million
(Euro 12.5 million) net of cash balances. This represents a multiple of
approximately 4.2x operating profits. Further consideration up to a maximum of
Stg£11.9 million (Euro 17.8 million) may be paid based on the average results 
of Bottle Green for the three years to 31 March 2007, which would result in a 
total maximum potential consideration of Stg£25 million (Euro 37.3 million). 
In order to earn the maximum consideration the average profits in the period to 
March 2007 would have to be not less than Stg£5.355 million (Euro 8.0 million) 
per annum.

The acquisition of Bottle Green is a step in the expansion of DCC Food &
Beverage into Britain and builds on the excellent growth record of the Irish
based wine distribution business, Woodford Bourne. Woodford Bourne has grown
rapidly in recent years both organically and through the acquisition of the
wholesale and trade wine business of Mitchell and Son Limited and Ecock Wine 
and Spirits Limited in the South of Ireland and DWS Wholesale Limited in the 
North of Ireland.

Jim Flavin, Chief Executive/Deputy Chairman of DCC plc, said today:

    'The acquisition of Bottle Green provides an excellent opportunity 
    for DCC Food & Beverage to build on the market outperformance of its 
    Irish wine business by expanding into a more substantial and growing 
    UK wine market. Bottle Green is well positioned in the off trade 
    segment of this market benefiting from the company's strong reputation, 
    deep knowledge of the wine market and the success of its own brands.'



For reference:
Jim Flavin, Chief Executive/Deputy Chairman - DCC plc   
Frank Fenn, Managing Director - DCC Food & Beverage 
Kieran Conlon, Investor Relations Manager               

Tel.: [phone]
Email:[e-mail]
Web: www.dcc.ie




                      This information is provided by RNS
            The company news service from the London Stock Exchange