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RM buys educational products distributor

RM Group plc, a provider of educational products and services, has bought DACTA, which is a supplier of branded learning products to the education sector across Europe.

The deal, which could be worth around £4 million, enhances RM’s range of products and introduces a European-wide distribution network to its business.

RM paid some £2.3 million in cash on completion, with a further sum of up to £1.71 due in 2010 conditional upon performance. Post-completion, DACTA will trade as a separate business within the RM Group.

DACTA’s managing director, Graham Farrow, said the company’s shareholders decided to sell the business to take it to the next stage of its growth.

RM was established in 1973 and is listed on the main market of the London Stock Exchange. The company supplies its products and services to schools, colleges, universities as well as government educational departments and agencies.

DACTA has been a specialist education distributor for LEGO since it was founded in 2004. It also holds the European distribution rights for TOLO Education products.

The company operates through a Europe-wide network of specialist dealers from premises near Wrexham. In the year to the end of December 2006, it generated a £6.5 million turnover with a £570,000 operating profit.

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