Business support services group DCC has agreed the sale of its healthcare arm in a deal valuing the division at more than £1 billion.
London-listed DCC, which has its headquarters in Dublin, is set to sell the business to HealthCo Investment – a subsidiary of Investindustrial Advisors – for £1.05 billion as part of efforts to focus on its energy business.
DCC said: “The proposed transaction is a material step in the group’s strategy to simplify operations, maximise shareholder value and accelerate the growth of its energy business, the group’s largest and highest returning division.”
The healthcare business delivered £859.4 million of revenues in the year to March 31 2024 and underlying earnings of £88.1 million – representing around 13% of the group’s overall adjusted operating profit.
Donal Murphy, chief executive of DCC, said: “Our strategy will continue to build DCC as a market-leading multi-energy business.
“The profitable sale creates immediate value for our shareholders, and we are confident that Investindustrial will take DCC Healthcare forward in the best long-term interests of its employees, customers and suppliers.”
DCC expects the deal to complete in the third quarter of 2025.
FTSE 100 firm DCC made total revenues of £19.9 billion in the year to March last year.
It announced plans last November to sell the healthcare arm, following a strategic review.
DCC Healthcare has more than 3,000 employees and operates globally through 11 manufacturing sites and distribution and commercial centres.
It has expanded organically as well as through 30 acquisitions since 2006.
Andrea Bonomi, chairman of Investindustrial’s advisory board, said: “We are excited about the acquired businesses’ growth potential and look forward to working with their management teams and employees in the next phase of their growth.”
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