Marketing and distribution company DCC has acquired 75% of TechnoPharm for €8.3 million. TechnoPharm is a Dublin-based distributor of specialist pharmaceuticals and medical devices, primarily to Irish hospitals.
The company has experienced strong growth in recent years and is expected to generate operating profits of approximately €2 million this year.
DCC's initial consideration of €8.3 million is a mixture of cash of €7.9 million and DCC shares to the value of €0.4 million through the re-issue of 35,633 treasury shares at €11.35 a share.
Put and call options are in place to acquire the remaining 25% of the company over the next three years.
TechnoPharm will be an operating subsidiary of Fannin Healthcare. The acquisition represents a significant broadening of DCC's hospital supply operations into the distribution of specialist pharmaceuticals, DCC said in a statement.
'This is DCC's sixth bolt-on acquisition in the current financial year,' DCC's Chief Executive and Deputy Chairman Jim Flavin said.
'I am confident that individually each will be shareholder value enhancing and that collectively they will be significantly so in the future,' he added.
