Business support services company DCC said today it will sell its healthcare division to HealthCo Investment Ltd for a total enterprise value of £1.05 billion.
Last November, DCC had said it would exit its healthcare division and also look at options for its technology business in order to focus on energy, its biggest and fastest-growing business unit.
The sale of DCC Healthcare, which accounted for about 13% of DCC's adjusted operating profit in the year ended March 2024, is expected to generate net cash proceeds of about £945m, the company said.
DCC said it plans to return to shareholders the surplus cash generated by the group's restructuring.
DCC said the proposed deal is a material step in its strategy to simplify operations, maximise shareholder value and accelerate the growth of its energy business, its biggest and highest returning division.
In the year ended 31 March 2024, DCC Healthcare recorded revenue of £859.4m and adjusted operating profit of £88.1m.
"The disposal of DCC Healthcare is a material step in simplifying DCC's operations and focusing on our high growth, high return, energy business,"" DCC's chief executive Donal Murphy said.
"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," he added.
Today's proposed deal is subject to receipt of customary regulatory approvals and is expected to complete in the third quarter of DCC's calendar year.
