DCC sells Healthcare arm for €1.22bn
The intended disposal had been flagged by DCC in December, when the business proposed a major strategic shift including plans to sell its DCC Healthcare arm within months and to review strategic options for DCC Technology within the next 24 months.
The proposed changes will see the group focus purely on the energy sector, which already accounted for around 75pc of the business.
The plan is to return a share from the proceeds of the disposals to investors as well as to invest in the future energy business.
After confirming the Healthcare business disposal DCC said it will be a material step in the strategy to: 'simplify operations, maximise shareholder value and accelerate the growth of its energy business, the group's largest and highest returning division."
DCC's CEO Donal Murphy, 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."
The deal is expected to close in the third quarter of 2025.
DCC posted sales of £20bn (€24bn) in the 12 months to the end of March last year, and a £683m adjusted operating profit.
The healthcare business generated revenue of £859m in the same year and underlying earnings of £88.1m
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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."
DCC expects net cash proceeds of c.£945m from the sale, including an unconditional deferred amount of £130m. receivable within two years.
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