Investindustrial, through its Healthco Investment platform, has agreed to acquire DCC Healthcare in a deal valued at £1.05bn ($1.41bn), marking a significant private equity investment into the European healthcare sector.

The acquisition includes a £130m two-year deferred consideration and is set to close in the third quarter of 2025. The transaction represents a multiple of approximately 12x DCC Healthcare’s 2024 adjusted operating profit.

DCC Healthcare, which operates 11 manufacturing and distribution sites globally and employs over 3,000 staff, generated £859.4m in revenue and £88.1m in operating profit in the year ending 31 March 2024. The business consists of two high-growth platforms: HBI, a CDMO focused on complex nutritional supplements and beauty products; and Vital, a leading medical device manufacturer and supplier.

“HBI and Vital are market leaders in their respective fields and present strong opportunities for internationalisation and complementary acquisitions,” said Andrea C. Bonomi, Chairman of Investindustrial’s advisory board. “This transaction aligns perfectly with our buy-and-build strategy in global healthcare.”

The deal follows DCC’s decision to streamline operations and accelerate growth in its core energy business. DCC plans to return surplus capital from the divestiture to shareholders while maintaining a strong balance sheet.

Barclays and Moelis & Co advised Investindustrial, with legal counsel from Milbank, Chiomenti, and Paul Weiss. DCC was advised by JP Morgan and legal teams from Cleary Gottlieb and William Fry.

Source: Investors in Healthcare