DCC Healthcare acquires Ion Laboratories
12 November 2019
DCC Healthcare announces acquisition of Ion Laboratories
DCC plc, the leading international sales, marketing and support services group, announces that DCC Health & Beauty Solutions has acquired Ion Laboratories, Inc ('Ion'), a provider of contract manufacturing and related services to the growing health supplements and nutritional products market in the US.
The acquisition of Ion follows the acquisition of Elite One Source in February 2018 and will significantly enhance DCC Health & Beauty Solutions' service offering to customers in the US market. Ion has a broad product format capability encompassing tablets, capsules, powders and liquids across a variety of product categories including herbal and botanical products, probiotics and liquid nutritionals. Ion is currently commissioning a new nutritional gummies manufacturing line which will provide DCC Health & Beauty Solutions with capability in this fast growth category. Ion's customer base largely consists of specialty brand owners and its service offering includes product development, formulation, manufacturing, packaging and regulatory services.
Ion's well-invested facilities in Largo, Florida extend to 350,000 square feet and provide capacity to meet its organic growth plans. The facilities comply with FDA cGMP (current Good Manufacturing Practices) and Health Canada standards and are certified by leading third-party regulatory bodies, including NSF and USDA Organic. The business is led by an experienced management team, employs 360 people and has revenues of approximately $80 million.
The consideration was based on an enterprise value of approximately $60 million (£46 million), most of which was paid in cash on completion.
Donal Murphy, Chief Executive of DCC plc, said today:
"DCC Health & Beauty Solutions provides high-quality services to leading health and beauty brand owners, specialist retailers and direct sales organisations. The acquisition of Ion significantly enhances our presence in the US market and Ion will work closely with both Elite One Source and DCC Health & Beauty Solutions' European businesses to cross-sell the full breadth of the Group's comprehensive offering for health & beauty brands.
The US is the world's largest health supplements and nutritional products market. It is also an innovative, high-growth market, with a fragmented contract manufacturing base. We continue to be excited by the significant opportunities for organic and acquisitive growth in this market."
For reference:
Donal Murphy, Chief Executive
Conor Costigan, Managing Director, DCC Healthcare
Kevin Lucey, Head of Capital Markets
Telephone: +353 1 2799400
Email: investorrelations@dcc.ie
Web: www.dcc.ie
Powerscourt (Media)
Lisa Kavanagh / Victoria Palmer-Moore
Telephone: +44 20 7250 1446
Email: DCC@powerscourt-group.com
About DCC plc
DCC is a leading international sales, marketing and support services group with a clear focus on performance and growth. It operates through four divisions: LPG, Retail & Oil, Technology and Healthcare.
DCC is an ambitious and entrepreneurial business operating in 20 countries, supplying products and services used by millions of people every day. Building strong routes to market, driving for results, focusing on cash conversion and generating superior sustainable returns on capital employed enable the Group to reinvest in its business, creating value for its stakeholders.
Headquartered in Dublin, employing approximately 12,700 people, DCC's four divisions are:
· DCC LPG - a leading LPG sales and marketing business with operations in Europe, the US and Asia and a developing business in the retailing of natural gas and electricity;
· DCC Retail & Oil - a leader in the sales, marketing and retailing of transport fuels and commercial fuels, heating oils and related products and services in Europe;
· DCC Technology - a leading route-to-market and supply chain partner for global technology brands and customers; and
· DCC Healthcare - a leading healthcare business, providing products and services to healthcare providers and health and beauty brand owners.
DCC plc is listed on the London Stock Exchange and is a constituent of the FTSE 100. In its financial year ended 31 March 2019, DCC generated revenue of £15.2 billion and operating profit of £460 million.
DCC has an excellent record, delivering compound annual growth of 14% in operating profit and generating an average return on capital employed of approximately 19% over 25 years as a public company.
About DCC Healthcare
DCC Healthcare is a leading healthcare business, providing products and services to healthcare providers and health and beauty brand owners. DCC Healthcare operates through two businesses, DCC Vital and DCC Health & Beauty Solutions. DCC Vital markets and sells medical and pharmaceutical products to healthcare providers across all sectors of the healthcare market in the UK and Ireland. DCC Health & Beauty Solutions builds long-term partnerships with international brand owners, providing specialist services including product development, formulation, manufacturing and packaging.
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