22nd Apr 2025 08:25
(Alliance News) - DCC PLC on Tuesday said it has agreed to sell its healthcare division for GBP1.05 billion as part of a strategic overhaul that will see the group focus on its Energy business and return surplus capital to shareholders.
The Dublin-based sales, marketing, and support services provider said it will sell DCC Healthcare to HealthCo Investment Ltd, an investment vehicle of funds managed by Investindustrial Advisors Ltd.
The deal values the division at around 12 times its adjusted operating profit of GBP88.1 million in the financial year that ended March 31. It is expected to complete in the third quarter of 2025, subject to regulatory approvals, DCC said.
DCC said it expects to receive around GBP945 million in net cash proceeds, including a deferred GBP130 million to be paid within two years. It confirmed it plans to return a significant portion of this to shareholders, while still maintaining an investment-grade balance sheet.
The plan to sell the Healthcare business was first announced back in November. It's disposal marks a "material step" in simplifying DCC's operations and sharpening its focus on the core Energy division, which contributed 74% of group operating profit in the year ended March 2024, or GBP503.0 million.
At the time, DCC said it also would sell its third business, DCC Technology, within two years. The company provided no update on its plans for DCC Technology on Tuesday.
DCC Healthcare generated revenue of GBP859.4 million in the year ended March 31, with a return on capital employed of around 10%.
"This profitable sale creates immediate value for our shareholders," said Chief Executive Officer Donal Murphy. "We are confident that Investindustrial will take DCC Healthcare forward in the best long-term interests of its employees, customers and suppliers."
Shares in DCC were down 1.3% to 4,914.00 pence on Tuesday morning in London. The wider FTSE 100 index was marginally lower.
By Eva Castanedo, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
DCC