DCC Healthcare acquires primary care supplier
15 March 2021
DCC Healthcare acquires leading primary care supplier in Germany and Switzerland
DCC plc, the leading international sales, marketing, and support services group, announces that DCC Healthcare has agreed to acquire Wörner Medizinprodukte Holding GmbH ("Wörner"), a leading supplier of medical and laboratory products to the primary care sector in Germany and Switzerland.
Wörner was established in 1991 and has grown organically and through bolt-on acquisitions to become one of the leading primary care suppliers in the fragmented German market, providing nationwide sales and distribution coverage; it also has a strong presence in the Swiss market. Wörner sells a broad product range to approximately 20,000 customers annually, including general practitioners, primary care centres, specialist medical centres and laboratories. The business recorded revenue of approximately €70 million in 2020 and employs 158 people. Wörner will continue to be led by its existing, experienced, management team from its headquarters in Reutlingen, Germany.
Wörner will join the DCC Vital group, a leader in the sales, marketing and distribution of medical products to the hospital, community and primary care sectors in Britain and Ireland. There are strong similarities between DCC Vital's primary care activities and Wörner, particularly in terms of customer focus, product offering and digital sales approach, providing value creation opportunities in areas such as procurement, marketing and the use of technology. Wörner has an active bolt-on acquisition target list. DCC, with its expertise in acquisitive growth, will, following completion of the transaction, work with the Wörner team to accelerate the execution of these opportunities. The acquisition of Wörner will also provide a platform for the expansion of DCC Vital's broader activities into Continental Europe, particularly in Germany, which is a large, well-funded and growing healthcare market.
DCC is acquiring Wörner based on an initial enterprise value of approximately €80 million. The acquisition is subject to competition authority approval in Germany and Austria and is expected to complete in April 2021.
Donal Murphy, Chief Executive of DCC plc, said today:
"The acquisition of Wörner represents a significant scale-up of our primary care business and extends DCC Vital's sales and marketing activities into Continental Europe for the first time. DCC Vital is a key growth platform for DCC and has delivered strong organic growth in recent years in the sales and marketing of medical products across the primary care, community, and hospital sectors. DCC Vital will continue to build its business across Europe in the coming years and Wörner will provide an excellent platform for further acquisition activity, both in Germany, Europe's largest healthcare market, and across the DACH region."
For reference:
Donal Murphy, Chief Executive
Conor Costigan, Managing Director, DCC Healthcare
Rossa White, Head of Group Investor Relations
Telephone: +353 1 2799400
Email: investorrelations@dcc.ie
Web: www.dcc.ie
Powerscourt (Media)
Lisa Kavanagh / Eavan Gannon
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 13,500 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 power;
· DCC Retail & Oil - a leader in the sales, marketing and retailing of transport fuels, 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 2020, DCC generated revenue of 14.8 billion and operating profit of 494.3 million.
DCC has an excellent record, delivering compound annual growth of 14.5% in operating profit and generating an average return on capital employed of approximately 19% over 26 years as a public company.
About DCC Healthcare
DCC Healthcare is a leading healthcare business providing products and services to health & beauty brand owners and healthcare providers. DCC Healthcare has revenues of over £600 million and circa 2,700 employees across its operations in Britain, Ireland and the US. DCC Healthcare has two activities:
· DCC Health & Beauty Solutions: provision of outsourced services to international Health & Beauty brand owners principally in the Nutrition and Beauty sectors.
· DCC Vital: sales, marketing and distribution of medical products to healthcare providers across all sectors of the healthcare market in the UK and Ireland from hospitals through to community care and primary care.
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