LONDON: DCC plc said Monday it has reached a definitive agreement to sell its UK and Ireland Info Tech business to AURELIUS, a global private equity investor, in a deal valuing the unit at approximately £100 million.
The transaction, which is expected to close in the fourth quarter pending regulatory approvals, reflects a cash-free, debt-free valuation with normalized working capital. The business posted £2 billion in revenue for the fiscal year ended March 31 and accounted for about 1% of DCC’s continuing operating profit.
DCC said net cash proceeds from the sale are not material due to seasonal working capital patterns and £156 million in supply chain financing tied to the business. The company will retain freehold ownership of its national distribution center in Burnley, England.
The divestment marks another strategic step for DCC Technology, which now comprises the North America-based Pro Tech business and a growing presence in Europe. DCC Technology is considered the world’s largest specialist distributor of professional AV equipment and Life Tech products.
“This divestment is a further material step in simplifying our Group and focusing on our high-growth, high-return energy business,” said Donal Murphy, DCC chief executive. “We are confident that AURELIUS will be a strong partner for the business and our team, paving the way for growth and long-term success.”