Irish energy and services group DCC has acquired Almo Corporation, the largest distributor of appliances and consumer electronics in the US, in a deal worth $610 million (€542 million).
The transaction represents DCC’s largest acquisition to date and effectively doubles the size of its footprint in the US.
DCC said the Almo business was acquired in a “bilateral transaction” from the Chaiken family, who have owned and managed it since its foundation 75 years ago, and was based on an enterprise value for Almo of $610 million on a cash-free, debt-free basis.
Almo, which is headquartered in Philadelphia and employs approximately 660 people across the US, will continue to be led by its current chief executive, Warren Chaiken.
“Almo is a leading specialist sales, marketing and value-added distribution business, operating across the B2B and consumer channels for pro AV (professional audio/visual), consumer appliances, consumer electronics and lifestyle products, with revenue of approximately $1.3 billion,” DCC said.
The acquisition would significantly increase the scale of DCC Technology's overall business in North America. On a pro-forma basis, DCC Technology will now have revenue of approximately $2.3 billion in the region, it said.
"The synergistic acquisition of Almo more than doubles the size of our North American technology business," DCC chief executive Donal Murphy said.
“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,” he said.
“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,” he said.
