DCC acquires German medical devices business

DCC said the acquisition, which will be completed on a cash and debt-free basis, will be settled entirely in cash, with the Medi-Globe business expected to generate "a mid-teen return on capital employed" in three years.

The FTSE 100-listed group also noted that the transaction represented DCC Healthcare's largest acquisition to date and was a further material expansion of its DCC Vital unit's presence in the European healthcare market, following the acquisition of primary care supplier Wörner Medical in May 2021.

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.

"The acquisition of Medi-Globe and other recent acquisitions in DCC Healthcare and DCC Technology are consistent with our ambition to really scale our operations in these higher growth sectors. We are very pleased with DCC Vital's progress in expanding its market positions beyond Britain and Ireland - we now have strong European growth platforms in both medical devices and primary care supplies."

Reporting by Iain Gilbert at Sharecast.com