LONDON (dpa-AFX) - DCC Plc (DCC.L), an Irish sales, marketing, and support services company, announced Tuesday its agreement to sell its healthcare division to HealthCo Investment Limited, an investment unit of funds managed and/or advised by Investindustrial Advisors Limited. The proposed deal values DCC Healthcare at a total enterprise value of 1.05 billion pounds on a cash-free, debt-free basis.
The transaction is expected to complete in the third quarter of 2025, subject to receipt of customary regulatory approvals. Following the deal closure, DCC anticipates a significant return of capital to shareholders.
Total expected net cash proceeds would be around 945 million pounds, including an unconditional deferred amount of 130 million pounds receivable within two years.
In the year ended March 31, 2024, DCC Healthcare recorded revenue of 859.4 million pounds and adjusted operating profit of 88.1 million pounds. DCC Healthcare represented approximately 13% of DCC's adjusted operating profit in the year.
DCC said the deal is part of its previously announced strategy to simplify operations and accelerate the growth of its energy business, the Group's largest and highest returning division.
Donal Murphy, Chief Executive of DCC, said, '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 DCC Board continues to expect that surplus cash arising from the simplification of the firm will be returned to shareholders, while maintaining a strong, investment-grade balance sheet.
In November last year, DCC, which provides solutions across energy, healthcare and technology, had announced its strategy to focus on the energy sector, and begun preparations for the sale of DCC Healthcare.
DCC Energy then represented 74 percent of the Group's operating profit, and delivered 18.7 percent return on capital employed, the highest return of the Group's three divisions.
DCC added then that it would review within the next 24 months its strategic options for DCC Technology, following completion of its value enhancing operational improvement programme.
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