Business support services company DCC has today announced a deal to buy a US-based healthcare manufacturing services provider.
DCC also said its third-quarter operating profit rose from last year, in line with expectations and ahead of the same time the previous year.
The deal to buy Elite One Source Nutritional Services, with an enterprise value of $50m, marks DCC Healthcare's first acquisition in the US health and beauty sector.
Elite focuses on complex-formulation nutritional products in tablet and capsule dosage forms, including organic and probiotic products, across different packaging formats.
DCC's chief executive Donal Murphy said the acquisition of Elite provides the firm with an entry into the US market, the world's largest healthcare and dietary supplements market.
"The US is an innovative, high-growth market, with a fragmented contract manufacturing base, which offers DCC significant opportunities for organic and acquisitive growth," the CEO added.
In a trading update for the three months to the end of December, DCC said that operating profit in its Technology division was ahead of the previous year, boosted by acquisitions and a good organic performance from the UK and Ireland.
DCC said that operating profits at the company's LPG division was in line with expectations despite the headwind of the increasing cost of product.
The company said its Retail & Oil division recorded good growth in operating profit on the back of strong organic profit growth in Denmark. DCC noted that the business in the UK performed in line with expectations.
Meanwhile, DCC Healthcare also recorded strong growth in operating profits for the three month period.
Looking ahead, DCC said that despite the mild start to the fourth quarter - especially in France - it expects that both operating profit and adjusted earnings per share will be well ahead of the previous year and in line with market expectation.
