DCC Healthcare Acquires Medi-Globe Technologies

DCC Healthcare and Medi-Globe Technologies GmbH are about to become one company.

DCC Healthcare is purchasing Medi-Globe for €245 million; the transaction represents DCC Healthcare’s largest acquisition to date and is a further material expansion of DCC Vital’s presence in the European healthcare market, following the deal for primary care supplier Wörner Medical in May 2021. Expected to generate a mid-teen return on capital employed in three years, the DCC Healthcare-Medi-Globe transaction is subject to competition authority approval in Germany and France and is expected to be finalized this quarter.

“We are delighted to welcome Medi-Globe into the DCC Group,” DCC plc CEO 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 an 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.”
 
Founded in 1990, Medi-Globe develops, manufactures, and distributes single-use devices for endoscopy in diagnostic and therapeutic procedures. The business has grown organically and through bolt-on acquisitions to become a global player in its focus areas of gastroenterology and urology. These are large and growing therapeutic areas, benefiting from strong demographic and treatment trends. Medi-Globe has revenues of approximately €120 million (£104 million) and employs 600 people. Its products are sold to hospitals and procurement organizations in more than 120 countries through direct sales operations in Germany, France, Austria, Netherlands, Czechia, and Brazil; and an international network of distributors. The business has significant regulatory and R&D capability with a development pipeline of proprietary products. Medi-Globe sources its products from high quality manufacturers, as well as its own cleanroom facility in Czechia. Its management team will continue to lead the business from its Bavaria, Germany, headquarters.
 
DCC Vital’s growth strategy is principally focused on building its international presence in own-brand medical devices and in primary care supplies and services. DCC Vital’s existing own-brand medical devices activities are focused on minimally invasive surgery, cardiac monitoring, and anaesthesia. The addition of Medi-Globe creates an international platform of scale in single-use devices with product development, regulatory, and manufacturing capability; direct sales and marketing infrastructure in eight countries, and an extensive international distributor network. 
 
DCC is an international sales, marketing, and support services group with a focus on sustainable growth. DCC operates in 21 countries, supplying products and services used by millions of people every day. Headquartered in Dublin, the Group operates across three sectors: energy, healthcare, and technology, employing more than 15,400 people. In its financial year ended March 31, 2022, DCC generated £17.7 billion in revenue and £589.2 million in adjusted operating profit.
 
DCC Healthcare is a healthcare business providing products and services to health and beauty brand owners and healthcare providers. DCC Healthcare has more than £765 million in revenue and about 2,800 employees across its operations in Britain, Ireland, the United States, and the DACh region. DCC Healthcare has two areas of activity—DCC Vital: sales, marketing and distribution of medical products to healthcare providers across all sectors of the healthcare market in the U.K., Ireland, and DACh from hospitals through to community care and primary care; and DCC Health & Beauty Solutions: provision of outsourced services to international health and beauty brand owners principally in the nutrition and beauty sectors.