DCC PLC on Thursday said its Healthcare unit has agreed to buy Medi-Globe Technologies GmbH, the unit’s largest acquisition to date.
Medi-Globe is a medical devices business focused on minimally invasive procedures. 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 FTSE 100-listed sales, marketing, and support services company said Medi-Globe will join the DCC Vital group, a distributor of medical products to the hospital, community and primary care sectors in the UK and Ireland.
It explained that the acquisition is based on an enterprise value of around €245 million on a cash-free, debt-free basis.
Under the agreement, Medi-Globe will continue to be led by its existing management team from its headquarters in Bavaria, Germany, the company added.
DCC noted that the acquisition is a ‘material’ expansion of its presence in the European healthcare market, following on from the acquisitions of primary care supplier Worner Medical in May last year.
‘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,’ it explained.
Further, DCC said that it expects the acquisition to generate a mid-teen return on capital employed in three years. Medi-Globe currently has revenue of around €120 million and employs approximately 600 people, it added.
The acquisition is expected to be complete in the fourth quarter of this year, once it has received competition authority approval in Germany and France.
DCC Chief Executive Donal Murphy said: ‘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.’
DCC shares were up 0.5% to 4,825.00 pence each in London early Thursday.
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