LONDON: DCC plc announced Monday it has agreed to sell its healthcare division to HealthCo Investment Limited, a subsidiary of funds managed by Investindustrial Advisors Limited. The deal values DCC Healthcare at £1.05 billion on a cash-free, debt-free basis.
The transaction, which is subject to regulatory approvals, is expected to be completed in the third quarter of 2025. DCC said the sale is part of its strategy to simplify operations and accelerate the growth of its energy business, which is the company’s largest and highest-returning division.
“The disposal of DCC Healthcare is a material step in simplifying DCC’s operations and focusing on our high-growth, high-return energy business,” said Donal Murphy, Chief Executive of DCC. “The profitable sale creates immediate value for our shareholders.”
DCC Healthcare recorded revenue of £859.4 million and an adjusted operating profit of £88.1 million in the year ended March 31, 2024. The company expects net cash proceeds from the sale to total approximately £945 million, including a deferred amount of £130 million payable within two years.
Following the completion of the transaction, DCC anticipates returning a significant portion of the cash proceeds to shareholders while maintaining a strong balance sheet.
Investindustrial has not disclosed its plans for DCC Healthcare post-acquisition, but DCC expressed confidence that the business would continue to serve its employees, customers, and suppliers effectively.
DCC is a leading international sales, marketing and support services group. Headquartered in Dublin, DCC plc is listed on the London Stock Exchange and is a constituent of the FTSE 100. For the financial year ended 31 March 2024, DCC generated revenues of £19.9 billion and adjusted operating profit of £682.8 million. DCC has an excellent record, delivering compound annual growth of 14% in adjusted operating profit and unbroken dividend growth of 13% while maintaining high returns on capital employed over 30 years as a public company.