22-04-2025
DCC to sell healthcare unit for €1.22bn
DCC, the Dublin-based energy to technology distribution and services group, has agreed to sell its healthcare unit for £1.05 billion (€1.22 billion) as it focuses on simplifying its business around energy.
The buyer is HealthCo Investment, which is owned by funds run or advised by London-based private equity firm Investindustrial Advisors, DCC said in a statement on Tuesday.
The planned deal is on a cash-free, debt-free basis and is subject to various regulatory approvals. It is expected to complete in the third quarter of this calendar year, it said. Some £130 million of the consideration is deferred and will be received within two years.
DCC, founded in 1976 by businessman Jim Flavin as a provider of venture capital for start-ups before floating almost two decades later, revealed in November it was abandoning its conglomerate roots with a plan to sell its healthcare division and review 'strategic options' for its technology business.
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Chief executive Donal Murphy said at the time the group believes that its energy business – now by far its largest division – and related opportunity in energy transition presents the largest growth opportunity available to the group.
'The disposal of DCC Healthcare is a material step in simplifying DCC's operations and focusing on our high growth, high return, energy business. Our strategy will continue to build DCC as a market-leading multi-energy business,' said Mr Murphy on Tuesday.
'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 distribution and services conglomerate, which sells everything from catheters to hospitals to audiovisual equipment to events companies, hired JP Morgan at the time to preparation the healthcare division for sale.
DCC reiterated that it expects to return surplus cash generated from the healthcare business sale to shareholders, while maintaining a strong, investment-grade balance sheet.
In the year ended 31 March 2024, DCC Healthcare recorded revenue of £859.4 million and adjusted operating profit of £88.1 million. The unit represented approximately 13 per cent of group operating profit. 2024.
