Dublin-based business support services group DCC has announced plans to sell its healthcare division to HealthCo Investment Ltd for a total enterprise value of £1.05 billion, marking a significant move in its strategic shift toward its core energy business.
The deal, unveiled on Tuesday, is expected to yield net cash proceeds of approximately £945 million. DCC confirmed that it intends to return surplus funds to shareholders following the completion of the transaction, which remains subject to customary regulatory approvals. Completion is anticipated in the third quarter of DCC’s current financial year.
The sale comes as part of a broader restructuring plan first signalled in November 2023, when DCC said it would exit its healthcare business and consider strategic options for its technology division. The company said the move will allow it to focus on energy, its largest and fastest-growing unit.
DCC Healthcare contributed around 13% of the company’s adjusted operating profit for the year ending 31 March 2024. During that period, the division generated £859.4 million in revenue and £88.1 million in adjusted operating profit.
Chief Executive Donal Murphy described the sale as a “material step” in simplifying the company’s operations and reinforcing its long-term strategy.
“Our strategy will continue to build DCC as a market-leading multi-energy business,” Murphy said. “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.”
HealthCo Investment Ltd, backed by private equity firm Investindustrial, will take over the healthcare arm. DCC expressed confidence in the buyer’s ability to drive the next phase of growth for the division.
The energy sector remains DCC’s primary focus, delivering the highest returns within the group. The company has been investing heavily in its energy operations as part of a long-term strategy to lead in the multi-energy space, including lower-carbon energy solutions.
Investors responded positively to the news, viewing the sale as a decisive move to streamline operations and unlock shareholder value.
With the healthcare divestment now in motion, market watchers will be paying close attention to any further developments regarding DCC’s technology business, as the group continues to reshape its portfolio around its energy ambitions.
