DCC divests healthcare division for £945 million

IRELAND – DCC plc, the Dublin-based FTSE 100 conglomerate, has agreed to sell its healthcare division to Investindustrial Advisors for £1.05 billion (US $1.41 billion).

The transaction is expected to generate net cash proceeds of approximately £945 million, including a deferred payment of £130 million due within two years.

This move is part of DCC’s strategy to simplify its operations and focus on its high-growth energy business. ​

The sale of DCC Healthcare, which accounted for about 13% of the company’s adjusted operating profit in the year ended March 2024, marks a significant step in DCC’s restructuring efforts.

The healthcare division generated revenue of £859.4 million during the same period. DCC plans to return a substantial portion of the proceeds to shareholders while maintaining an investment-grade balance sheet.

Investindustrial Advisors, a European private equity firm, will acquire DCC Healthcare through its subsidiary, HealthCo Investment Ltd.

The deal values the division at approximately 12 times its 2024 adjusted operating profit. Completion of the transaction is anticipated in the third quarter of 2025, subject to customary regulatory approvals. ​

Following the announcement, DCC’s share price experienced a slight decline, reflecting market expectations that the sale price was below initial forecasts.

However, analysts view the divestment as a positive move, enabling DCC to concentrate on its energy operations, which are expected to drive future growth and shareholder value. ​

“The disposal of DCC Healthcare is a material step in simplifying DCC’s operations and focusing on our high-growth, high-return, energy business,” explained CEO Donal Murphy.

“Our strategy will continue to build DCC as a market-leading multi-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.”

The company also plans to divest its technology business, valued at approximately £800 million. ​

This strategic realignment positions DCC to capitalize on opportunities in the energy sector, aligning with global trends towards sustainable and efficient energy solutions.

The company remains committed to delivering value to its shareholders and stakeholders as it transitions into a more focused and dynamic business model.