DCC buys medical firm for €16m

DCC, the firm recently embroiled in an insider dealing case with banana importer Fyffees, has announced the acquisition of British-based Squadron Medical for €16 million.

The purchase by the Dublin-based business support group follows its largest ever acquisition earlier in the year when it purchased British oil distributor CPL Petroleum for €74.2m.

The company said yesterday that this latest move will help it expand its presence in Britain.

Squadron is based in Chesterfield.

It procures and supplies medical and surgical products on a just-in-time basis to point of use within hospitals.

Squadron’s founder and managing director, Peter Wyslych, will continue as head of the company.

DCC said the initial cash consideration payable is €16m, including net cash acquired of €3.5m.

It added that further consideration will be payable up to a maximum of €11.8m based on profits earned in each of the four financial years to March 31, 2012.

Executive chairman of DCC Jim Flavin said: “Squadron is well positioned for continued strong growth in the British hospital supply sector.

“Squadron will work closely with DCC’s subsidiary Fannin, a leader in hospital supplies in Ireland, to accelerate the development of DCC Healthcare’s business in the hospital supply sector in Britain.”

In its latest financial year ended August 30, Squadron had sales of €36.9m and adjusted operating profits of €2.6m. The value of the net tangible assets acquired at completion, inclusive of net cash, was €7.4m.