TIDMDCC
RNS Number : 6897Y
DCC PLC
08 September 2022
8 September 2022
DCC Healthcare significantly expands in medical devices with its
largest acquisition to date
Scale platform in European medical devices sector
DCC plc, the leading international sales, marketing, and support
services group, announces that DCC Healthcare has agreed to acquire
Medi-Globe Technologies GmbH ("Medi-Globe"), an international
medical devices business focused on minimally invasive procedures .
The transaction represents DCC Healthcare's largest acquisition to
date and is a further material expansion of DCC Vital's presence in
the European healthcare market, following on from the acquisition
of primary care supplier Wörner Medical in May 2021.
The acquisition is based on an enterprise value of approximately
EUR245 million (GBP213 million) on a cash-free, debt-free basis and
the consideration will be settled in cash on completion. The
acquisition is expected to generate a mid-teen return on capital
employed in three years. The transaction is subject to competition
authority approval in Germany and France and is expected to
complete in calendar Q4 2022.
Medi-Globe, founded in 1990, is involved in the development,
manufacture and distribution of single-use devices for endoscopy in
diagnostic and therapeutic procedures. The business has grown
organically and through bolt-on acquisitions to become a leading
global player in i ts focus areas of gastroenterology and urology.
These are large and growing therapeutic areas, benefiting from
strong demographic and treatment trends. Medi-Globe has revenues of
approximately EUR120 million (GBP104 million) and employs
approximately 600 people. Its products are sold to hospitals and
procurement organisations in over 120 countries through direct
sales operations in Germany, France, Austria, Netherlands, Czechia
and Brazil; and an international network of distributors. The
business has significant regulatory and R&D capability with a
strong development pipeline of innovative proprietary products.
Medi-Globe sources its products from high quality manufacturers, as
well as its own cleanroom facility in Czechia. Its highly
experienced management team will continue to lead the business from
its headquarters in Bavaria, Germany.
DCC Vital's growth strategy is principally focused on building
its international presence in own-brand medical devices and in
primary care supplies and services. DCC Vital's existing own-brand
medical devices activities are focused on the areas of minimally
invasive surgery, cardiac monitoring and anaesthesia. The addition
of Medi-Globe creates an international platform of scale in
single-use devices with high-quality product development,
regulatory and manufacturing capability; direct sales and marketing
infrastructure in eight countries and an extensive international
distributor network. The acquisition will provide meaningful
synergy opportunities, in particular through leveraging DCC Vital
and Medi-Globe's respective product portfolios and commercial
infrastructures.
Donal Murphy, Chief Executive of DCC plc, said today:
"We are delighted to welcome Medi-Globe into the DCC Group. The
synergistic acquisition of Medi-Globe significantly expands and
enhances DCC Vital's position in the medical devices sector. It
will create a leading international platform in single-use medical
devices for minimally invasive procedures, with strong product
development capability.
The acquisition of Medi-Globe and other recent acquisitions in
DCC Healthcare and DCC Technology are consistent with our ambition
to really scale our operations in these higher growth sectors. We
are very pleased with DCC Vital's progress in expanding its market
positions beyond Britain and Ireland - we now have strong European
growth platforms in both medical devices and primary care
supplies."
Presentation - audio webcast and conference call details:
DCC will host an audio webcast and conference call for analysts
and institutional investors at 09:00 BST today, 8 September 2022.
The slides for this presentation can be downloaded from DCC's
website: www.dcc.ie . The access details for the presentation are
as follows:
Ireland: +353 (0) 1 536 9584
UK: +44 (0) 2039 362 999
International: +44 (0) 2039 362 999
Passcode: 981365
Webcast Link:
https://www.investis-live.com/dcc/62d564d4d943801400a29223/ddcc
A replay of the webcast and transcript will be made available at
www.dcc.ie shortly after the event.
Contact information
Investor enquiries:
Kevin Lucey, Chief Financial Officer Tel: +353 1 2799 400
Hollie Daly, Investor Relations Manager Email:
investorrelations@dcc.ie
Media enquiries:
Powerscourt (Eavan Gannon/Genevieve Ryan) Tel: +44 20 7250
1446
Email: DCC@powerscourt--group.com
About DCC plc
DCC is a leading international sales, marketing and support
services group with a clear focus on sustainable growth. DCC is an
ambitious and entrepreneurial business operating in 21 countries,
supplying products and services used by millions of people every
day. Building strong routes to market, driving for results,
focusing on cash conversion and generating superior sustainable
returns on capital employed enable the Group to reinvest in its
business, creating value for its stakeholders.
Headquartered in Dublin, the Group operates across three
sectors: energy, healthcare and technology, employing over 15,400
people. DCC plc is listed on the London Stock Exchange and is a
constituent of the FTSE 100. In its financial year ended 31 March
2022, DCC generated revenue of GBP17.7 billion and adjusted
operating profit of GBP589.2 million.
DCC has an excellent record, delivering compound annual growth
of 14% in adjusted operating profit and generating an average
return on capital employed of approximately 19% over 28 years as a
public company.
Follow us on LinkedIn, Twitter .
www.dcc.ie
About DCC Healthcare
DCC Healthcare is a leading healthcare business providing
products and services to health & beauty brand owners and
healthcare providers. DCC Healthcare has revenues of over GBP765
million and circa 2,800 employees across its operations in Britain,
Ireland, USA and the DACh region. DCC Healthcare has two areas of
activity:
-- DCC Vital: sales, marketing and distribution of medical
products to healthcare providers across all sectors of the
healthcare market in the UK, Ireland and DACh from hospitals
through to community care and primary care.
-- DCC Health & Beauty Solutions: provision of outsourced
services to international Health & Beauty brand owners
principally in the Nutrition and Beauty sectors.
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END
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