DCC Healthcare has made its biggest ever acquisition after it agreed a deal to buy medical devices business Medi-Globe Technologies from European private equity group Duke Street.
The deal, which is worth €245m, is expected to be completed later in the year.
It is subject to competition authority approval in Germany and France.
Founded in 1990, Medi-Globe develops, manufactures and distributes of single-use devices for endoscopy in diagnostic and therapeutic procedures.
It had revenues of approximately €120m and employs about 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 as well as an international network of distributors.
DCC said today's deal marks a further material expansion of DCC Vital's presence in the European healthcare market and follows the acquisition of primary care supplier Wörner Medical
in May 2021.
Donal Murphy, chief executive of DCC, said 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," Mr Murphy said.
"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," he said.
"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," he added.
Duke Street had invested in the business in 2016 after a two-year period of origination focussed on the medical devices sub-sector.
It noted that the transaction was complex, with a complicated shareholder structure in place, and the deal took close to a year to execute.
Charlie Troup, Managing Partner at Duke Street, said the company was very pleased to announce the sale of Medi-Globe.
"Under our ownership, management has delivered a significant transformation across the business, involving investment across R&D, sales and marketing, and manufacturing. The positive development in business quality and growth has been recognised by DCC who see Medi-Globe as a key element of their strategic drive into healthcare," he added.
