DCC Technology to acquire Hammer
14 October 2016
DCC Technology to acquire Hammer, a specialist distributor of server and storage solutions
DCC plc, the international sales, marketing, distribution and business support services group, announces that DCC Technology, which trades as Exertis, has agreed to acquire Hammer Consolidated Holdings Limited ("Hammer"), a specialist distributor of server and storage solutions to resellers in the UK and Continental Europe. The acquisition is conditional, inter alia, on competition clearance from the European Commission and is expected to complete by the end of December 2016.
Based in Basingstoke, Hampshire and employing 165 people, Hammer distributes server and storage products for a broad range of leading suppliers including Dell, Intel, NetApp, Seagate and Western Digital. In addition, it provides product design and build solutions tailored to the requirements of customers in specific industries. Hammer sells to value added resellers, cloud service providers and system integrators from sales offices in the UK, France, Germany, Sweden, Holland and Belgium. Hammer's business is complementary to Exertis' existing server and storage business, significantly strengthening Exertis' supplier portfolio and adding almost 1,000 reseller customers.
In its financial year ended 31 January 2016, Hammer earned an operating profit of £6.3 million on revenue of £155.0 million. DCC has agreed to acquire 100% of the issued share capital of Hammer based on an initial enterprise value of £38.3 million. The consideration will be paid entirely in cash and is structured as an initial payment at completion, followed by earn out payments over three years based on Hammer's future trading results.
Tommy Breen, Chief Executive of DCC plc, said today:
"The acquisition of Hammer will significantly strengthen the product and service capability offered by Exertis to its reseller customers. In addition, Hammer's expertise will better enable us to take advantage of positive industry trends, including growth in cloud data centers and demand for big data analytics."
For Reference:
Tommy Breen, Chief Executive
Kevin Lucey, Head of Group Finance and Investor Relations
Telephone: +353 1 2799 400
Email: investorrelations@dcc.ie
Web: www.dcc.ie
About DCC plc
DCC plc is an international sales, marketing, distribution and business support services group headquartered in Dublin with operations in Britain, Continental Europe and Ireland. DCC has four divisions - DCC Energy, DCC Healthcare, DCC Technology and DCC Environmental. In its last financial year ended 31 March 2016, DCC generated revenue of £10.6 billion and operating profit of £300 million and currently employs approximately 10,500 people in 15 countries. DCC's shares are listed on the London Stock Exchange and are included in the FTSE All-Share Index and the FTSE 100 Index.
About DCC Technology
DCC Technology, which trades as Exertis, is a leading sales, marketing, distribution and supply chain services business providing a broad range of consumer and business technology products and services to retailer and reseller customers, primarily in the UK, Ireland, France, Sweden, Benelux and the United Arab Emirates. The business also has operations in Poland, China, USA, Germany, Spain and Norway.
This information is provided by RNS
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