REG - DCC PLC - Disposal of DCC Healthcare

DCCAnnouncement

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RNS Number : 6436F  DCC PLC  22 April 2025

 

 
22 April 2025
Disposal of DCC Healthcare

DCC plc ("DCC" or the "Group") is pleased to announce that it has entered into
a definitive agreement for the sale of DCC's healthcare division to HealthCo
Investment Limited ("HealthCo"), an independently managed investment
subsidiary of funds managed and/or advised by Investindustrial Advisors
Limited ("Investindustrial"), (the "Proposed Transaction"). The Proposed
Transaction values DCC Healthcare at a total enterprise value of £1,050
million on a cash-free, debt-free basis. The Proposed Transaction is subject
to receipt of customary regulatory approvals and is expected to complete in
the third quarter of this calendar year.

The Proposed Transaction is a material step in the Group's strategy to
simplify operations, maximise shareholder value and accelerate the growth of
its energy business, the Group's largest and highest returning division. As
previously communicated, the DCC Board anticipates that surplus cash arising
from the simplification of the Group will be returned to shareholders, while
maintaining a strong, investment-grade balance sheet.

In the year ended 31 March 2024, DCC Healthcare recorded revenue of £859.4
million and adjusted operating profit of £88.1 million, whilst generating a
return on capital employed of 10.2%.1 DCC Healthcare represented approximately
13% of the Group's adjusted operating profit in the year ended 31 March 2024.

Transaction highlights

·    Sale of DCC Healthcare at a total enterprise value of £1,050 million

·    Proposed Transaction represents a multiple of c.12 times 2024
adjusted operating profit, significantly above the Group's multiple today

·    Total expected net cash proceeds of c.£945 million, including an
unconditional deferred amount of £130 million receivable within two years

·    Completion and receipt of initial cash proceeds are expected in the
third quarter of this calendar year

·      DCC anticipates a significant return of capital to shareholders
post completion

Commenting on the announcement, Donal Murphy, Chief Executive of DCC plc, said
today:

"The disposal of DCC Healthcare is a material step in simplifying DCC's
operations and focusing on our high growth, high return, energy business. 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."

 

 (1) (#_ftnref1) Book value of DCC Healthcare at 30 September 2024 of c.
£765 million

 

 

 Enquiries

 DCC plc
 Donal Murphy, Chief Executive Officer                           Tel: +353 1 2799 400
 Kevin Lucey, Chief Financial Officer                            Email: investorrelations@dcc.ie
 Rossa White, Head of Group Investor Relations & Comms.

 J.P. Morgan Cazenove (Sole Financial Adviser)                   Tel: +44 20 7742 4000
 Richard Walsh / Dwayne Lysaght / Alex Bruce

 Sodali & Co (Financial PR)                                      Tel: +44 20 7250 1446
 Eavan Gannon / Pete Lambie                                      Email: DCCGroup@sodali.com

About DCC plc

DCC is a leading international sales, marketing and support services group.
Headquartered in Dublin, DCC plc is listed on the London Stock Exchange and is
a constituent of the FTSE 100. For the financial year ended 31 March 2024, DCC
generated revenues of £19.9 billion and adjusted operating profit of £682.8
million. DCC has an excellent record, delivering compound annual growth of 14%
in adjusted operating profit and unbroken dividend growth of 13% while
maintaining high returns on capital employed over 30 years as a public
company.

 

Follow us on LinkedIn (https://www.linkedin.com/company/dcc-plc)

www.dcc.ie (http://www.dcc.ie)

 Forward-looking Statements

This announcement may contain forward-looking statements that represent DCC's
expectations for its business, based on current expectations about future
events, which by their nature involve risk and uncertainty. DCC believes that
its expectations and assumptions with respect to these forward-looking
statements are reasonable, however because they involve risk and uncertainty
as to future circumstances, which are in many cases beyond DCC's control,
actual results or performance may differ materially from those expressed in or
implied by such forward-looking statements.

Regulatory Notes

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with DCC's obligations under Article 17 of MAR.

 

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