UK-listed sales and marketing group DCC has agreed to sell its healthcare division to a fund managed by private equity firm Investindustrial Advisors, in a deal valued at £1.05bn ($1.41bn), according to a report by Reuters.
The transaction provides Investindustrial with access to a well-established platform spanning medical devices, pharmaceutical services, and healthcare product distribution. The deal is expected to generate net cash proceeds of approximately £945m for DCC, according to a company statement on Tuesday.
DCC’s decision to divest comes as part of a strategic pivot announced in late 2024, where the company stated its intention to exit healthcare and explore options for its technology arm in order to sharpen its focus on its largest and fastest-growing division – energy.
The healthcare unit accounted for roughly 13% of DCC’s adjusted operating profit in the fiscal year ending March 2024. Its sale allows DCC to recycle capital into higher-growth areas, while also enabling Investindustrial to scale its healthcare exposure with a sizeable bolt-on acquisition.
The transaction, which is subject to customary regulatory approvals, is expected to close later this year.
