DCC, the fuel distribution-to-technology group, said on Thursday that its technology subsidiary has acquired Canadian audio specialist Jam, in a significant expansion of its North American business.

Jam, headquartered in Montreal, Canada, is a specialist sales, marketing and services business, serving the professional audio, musical instruments and consumer electronics product sectors. The business distributes more than 500 third-party brands, including vendors such as Allan & Heath, Focusrite, Harman, Incipio and Marshall.

DCC will pay $170 million for Jam, and expects the acquisition to be 4.5 per cent earnings-per-share accretive from completion and to generate a return on capital employed of about 15 per cent in the first full year of ownership.

DCC chief executive Donal Murphy said that the acquisition “significantly strengthens” the company’s position in the North American market.

“DCC Technology now has approximately $600 million in revenue in North America with a strong, service-led, specialist focus on professional audio and visual, musical instruments and consumer electronics. The growing and fragmented nature of these markets will provide DCC Technology with further opportunities for development in the coming years.”

The deal is the second North American acquisition for the company. It follows the takeover of Stampede in July 2018. DCC said it represents a further step in its strategy to broaden its customer base.

Jam’s management team will continue to run the business, which includes a Canadian sales office and national distribution centre, with a further national distribution centre and six sales offices across the US, following the acquisition. Jam had revenue of $323 million in the year to April 30th, 2018, and employs about 570 people.