DCC Healthcare to acquire German medical device business Medi-Globe

Flogas owner DCC has agreed to buy German medical devices business Medi-Globe Technologies, representing its healthcare division’s “largest acquisition to date”, the group said on Thursday.

The acquisition, subject to regulatory approval in Germany and France, is based on an enterprise value €245 million and will expand DCC Healthcare’s presence in the European healthcare market where its footprint has grown in recent times following DCC’s acquisition of Worner Medical last year.

The London-listed group — which operates across the energy, healthcare and technology sectors — said the deal is expected to generate “mid-teen return on capital employed” over the next three years.

Founded in 1990, Medi-Globe is involved in the development and manufacture of devices used for endoscopy. The company has revenues of “approximately €120 million and employs approximately 600 people”, DCC said on Thursday.

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The business is being sold by London-based Duke Street, a private equity group. Duke Street invested in Medi-Globe in 2016.

It represents the latest in a string of recent bolt-on acquisitions, including Protech in the UK and a biogas investment in Denmark.

“We are delighted to welcome Medi-Globe into the DCC Group,” said DCC chief executive Donal Murphy in a statement, adding that the acquisition “significantly expands” the group’s presence 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,” he said. “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.”

DCC, which finished its 2021 financial year in March, reported revenue of £17.7 billion (€20.9 billion) last year, as well as adjusted operating profit of £589.2 million. The group, which entered the energy sector through the 1977 purchase of Flogas in Ireland, said group operating profit for the quarter was “in line with expectations and well ahead of the prior year”, driven by strong growth in DCC Energy.