DCC Technology acquires Almo Corporation for $610 million

DCC Technology acquires Almo Corporation for $610 million

LONDON, UK: DCC Technology has completed the acquisition of Almo Corporation on 14 December 2021. The acquisition was based on an initial enterprise value of approximately $610 million (£462 million) on a cash-free, debt-free basis.

The transaction represents DCC’s largest acquisition to date and materially expands DCC Technology’s successful and growing North American business. The Business was acquired in a bilateral transaction from the Chaiken family, who have owned and managed Almo since its foundation 75 years ago.

DCC has now committed c.£550 million to acquisitions in the financial year ending 31 March 2022. DCC management will host a webcast at 9.00 am this morning (details below) to provide an update on the Group’s strategy and development priorities, DCC’s growth in North America and the acquisition of Almo.

The acquisition of Almo is a major step in the continuing expansion of both DCC and DCC Technology in North America. DCC Technology entered the North American market in 2018 and since then has expanded significantly, through a combination of strong organic growth and acquisition activity.

Together with DCC Technology’s existing platform, the acquisition of Almo will create the leading, specialist, Pro AV business in North America.

The North American market is the largest B2B and consumer technology market in the world and the acquisition will enhance DCC Technology’s presence and capability in the consumer channel where Almo is also the largest national distributor of consumer appliance and lifestyle products. It is led by a highly experienced management team with a high-quality sales, marketing and operating infrastructure.

Almo Corporation is a leading specialist sales, marketing and value-added distribution business, operating across the B2B and consumer channels for Pro AV, consumer appliances, consumer electronics and lifestyle products, with revenue of approximately $1.3 billion.

Donal Murphy, Chief Executive of DCC plc, said: “We are delighted to welcome Almo into the DCC Group and we would like to thank the Chaiken family for choosing DCC as their partner for the next phase of growth and development of the Business. The synergistic acquisition of Almo more than doubles the size of our North American technology business.

It will create the leading, specialist Pro AV player in the US, as well as providing the Group with real scale across the ecommerce and consumer channels, through Almo’s significant presence in the growing lifestyle, consumer appliance and electronics markets.

The acquisition of Almo and other recent acquisitions in DCC Technology and DCC Healthcare are consistent with our ambition to really scale our operations in these higher growth sectors.

We are very pleased with the Group’s progress since we first entered the North American market in 2018, where we have built substantial and successful businesses across the healthcare, technology and energy sectors. We have great opportunity for future expansion, given the platforms we’ve created, the attractive growth dynamics and the scope for consolidation.”

www.dcc.ie

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