Support services firm DCC announces sale of healthcare division

Donal Murphy, chief executive of DCC, with Kevin Lucey, the firms chief operating officer, and Conor Murphy, chief financial officer.

DCC, the Dublin-headquartered support services firm, has announced the sale of its healthcare division in a deal worth just over £1bn (€1.16bn).

The firm is made up of three divisions; energy, technology, and healthcare. The company has now said that it has entered into a “definitive agreement for the sale of DCC’s healthcare division to HealthCo Investment Limited”.

HealthCo is an independently managed investment subsidiary of funds managed by Investindustrial Advisors Limited.

The proposed transaction values DCC Healthcare at a total enterprise value of £1.05bn on a cash-free, debt-free basis. The deal is subject to regulatory approvals and is expected to complete in the third quarter of this calendar year.

According to DCC, in the year ending March 31 2024, DCC Healthcare recorded revenue of just under £860m and an adjusted operating profit of £88.1m. DCC Healthcare represented approximately 13% of the firm's adjusted operating profit in that financial year.

DCC anticipates a significant return of capital to shareholders post completion.

Donal Murphy, chief executive of DCC, said the disposal of DCC Healthcare is a “material step” in simplifying the company’s operations and “focusing on our high growth, high return, energy business”.

“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,” he added.