DCC disposes of its M&R division to Patterson Medical for €37m
The M&R business is a relatively small part of the DCC Healthcare division, comprising less than 10% of that subsidiary’s annual profits.
While DCC – as a group – is not in need of extra cash, the deal (Patterson Medical is ranked as the world’s leading distributor of rehabilitation and sports medicine products) was seen as beneficial given the relative lack of status the M&R side has within the wider business.
The M&R business is involved in the design, development, procurement and sales/marketing of mobility and rehabilitation products and has operations in Ireland, Britain, Australia and New Zealand.
The announcement of the sale boosted the Dublin-headquartered multi-disciplined distribution and support services group’s share price by 5c to €19.25, yesterday.
“The disposal is consistent with our strategy to concentrate the focus of DCC Healthcare on our larger healthcare businesses – DCC Hospital Supplies & Services and DCC Health & Beauty Solutions – which have strong leadership positions and significant opportunities for organic and acquisition growth,” said DCC group chief executive, Tommy Breen.
Last month DCC reported a 27% rise in pre-tax profits for the 12 months to the end of March, with its largest division – DCC Energy – performing strongest in what management called “an excellent year.”
Those results also showed a 26.6% rise in operating profits at DCC Healthcare to €21.1m, with that division’s revenues up by almost 6% at €334m for the year.
The Healthcare business is still one of two areas – the other being the Energy division – where DCC is most likely to grow through acquisition going forward; despite yesterday’s non-core sell-off.
