Business support services group DCC has confirmed the sale of its healthcare division in a landmark deal valued at £1.05 billion, marking a significant strategic shift towards its core energy operations. The London-listed firm, headquartered in Dublin, has agreed to offload DCC Healthcare to HealthCo Investment, a subsidiary of private equity firm Investindustrial Advisors.
The deal values the healthcare arm at just over £1.1 billion and follows a strategic review announced by DCC in November 2023. The company said the divestment is a “material step” in simplifying its structure, enhancing shareholder returns, and accelerating growth within its highest-performing sector—energy.
In a statement to the market, DCC said: “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.”
DCC Healthcare, which employs more than 3,000 people globally, operates across 11 manufacturing facilities and numerous distribution and commercial centres. The division generated £859.4 million in revenue in the year to 31 March 2024, with underlying earnings of £88.1 million. This accounted for around 13% of DCC’s overall adjusted operating profit during the same period.
DCC’s chief executive, Donal Murphy, hailed the sale as a milestone that aligns with the company’s long-term ambitions. “Our strategy will continue to build DCC as a market-leading multi-energy business,” he 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.”
The transaction is expected to complete in the third quarter of 2025, subject to the usual regulatory approvals and closing conditions.
DCC, a constituent of the FTSE 100 index, reported total group revenues of £19.9 billion for the year to March 2024. While the healthcare business has seen solid growth and consistent earnings, the group’s strategic review concluded that its future lay firmly in expanding its energy portfolio, which has delivered the strongest returns across the business.
Over the years, DCC Healthcare has grown both organically and through an impressive 30 acquisitions since 2006, becoming a respected player in the medical and pharmaceutical supply chain. The sale signals the end of a near two-decade chapter, as the group pivots more decisively towards sustainable and diversified energy services.
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Andrea Bonomi, chairman of Investindustrial’s advisory board, expressed confidence in the potential of the newly acquired assets. “We are excited about the acquired businesses’ growth potential and look forward to working with their management teams and employees in the next phase of their growth,” he said.
Industry analysts have largely welcomed the move, suggesting that DCC’s focused approach to energy could enhance operational efficiencies and increase investor confidence. The proceeds from the sale are likely to be used for further investment in renewables, distribution infrastructure, and potential bolt-on acquisitions in the energy sector.
DCC’s repositioning mirrors a wider trend among multinational firms to streamline operations and concentrate on sectors with greater long-term growth and return prospects. With the transition to cleaner energy continuing to dominate the global business agenda, DCC appears to be aligning itself with future market dynamics.
As the deal progresses towards completion next year, attention will now turn to how DCC deploys the capital raised from the sale—and how Investindustrial nurtures the future of the healthcare business it has acquired. Either way, this deal represents a significant shift for both companies and a bold move in DCC’s corporate evolution.
