DCC: FTSE 100 giant to sell healthcare division for £1.1bn
DCC has announced plans to sell its healthcare division to Healthco Investment Limited for £1.1bn as part of the FTSE 100’s company’s plan to shift its focus toward energy.
The value of the deal is around 12 times DCC’s full-year adjusted operating profit and will see £945m in net cash proceeds over the coming years.
Healthco Investment is a subsidiary of Investindustrial Advisors Limited, a European private equity fund.
Subject to regulatory approval, the transaction is expected to be completed in the third quarter of 2025.
In a statement on Tuesday, DCC said it represented a “material step in the group’s strategy to simplify operations, maximise shareholder value and accelerate the growth of its energy business,” which is its highest returning division.
“The DCC board anticipates that surplus cash arising from the simplification of the group will be returned to shareholders, while maintaining a strong, investment-grade balance sheet,” it added.
The Dublin-headquartered firm, which specialises in international sales, marketing and support services, reported £859.4m in revenue and £88.1m in adjusted operating profit last year.
DCC Healthcare represented approximately 13 per cent of its total profit haul.
“Our strategy will continue to build DCC as a market-leading multi-energy business,” chief executive Donal Murphy said in a statement.
“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.”
Shares in DCC are down just over four per cent this year to date.
The FTSE 100 firm employs around 16,600 people in 22 countries and operates in sectors including energy, healthcare and technology.