REG - DCC PLC - DCC significantly expands in medical devices

DCCAnnouncement

08/09/2022 07:00

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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 €245
million (£213 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 its 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 €120 million (£104 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
(http://www.dcc.ie/) . (http://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
(https://eur02.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.investis-live.com%2Fdcc%2F62d564d4d943801400a29223%2Fddcc&data=05%7C01%7Chdaly%40dcc.ie%7C2585f3e3468d443343e808da90c457bf%7C5b7cb417ee004876ab2b81fab4a0c984%7C1%7C0%7C637981470224221192%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=XVVYsBw7QRsUm00juSP9kCWxsqKmpEKnkMP4Xbk0Ojs%3D&reserved=0)

 

A replay of the webcast and transcript will be made available at www.dcc.ie
(http://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 (mailto: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 £17.7 billion
and adjusted operating profit of £589.2 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 (https://www.linkedin.com/company/dcc-plc) , Twitter
(https://twitter.com/dccplc?s=20&t=Z_XyTAnFQUI0tdsX3k5nfA) .

www.dcc.ie (http://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 £765 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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