22 April 2025

Disposal of DCC Healthcare

DCC plc ("DCC" or the "Group") is pleased to announce that it has entered into a definitive agreement for the sale of DCC's healthcare division to HealthCo Investment Limited ("HealthCo"), an independently managed investment subsidiary of funds managed and/or advised by Investindustrial Advisors Limited ("Investindustrial"), (the "Proposed Transaction"). The Proposed Transaction values DCC Healthcare at a total enterprise value of £1,050 million on a cash-free, debt-free basis. The Proposed Transaction is subject to receipt of customary regulatory approvals and is expected to complete in the third quarter of this calendar year.

The Proposed Transaction is a material step in the Group's strategy to simplify operations, maximise shareholder value and accelerate the growth of its energy business, the Group's largest and highest returning division. As previously communicated, the DCC Board anticipates that surplus cash arising from the simplification of the Group will be returned to shareholders, while maintaining a strong, investment-grade balance sheet.

In the year ended 31 March 2024, DCC Healthcare recorded revenue of £859.4 million and adjusted operating profit of £88.1 million, whilst generating a return on capital employed of 10.2%.1 DCC Healthcare represented approximately 13% of the Group's adjusted operating profit in the year ended 31 March 2024.

Transaction highlights

·    Sale of DCC Healthcare at a total enterprise value of £1,050 million

·    Proposed Transaction represents a multiple of c.12 times 2024 adjusted operating profit, significantly above the Group's multiple today

·    Total expected net cash proceeds of c.£945 million, including an unconditional deferred amount of £130 million receivable within two years

·    Completion and receipt of initial cash proceeds are expected in the third quarter of this calendar year

·      DCC anticipates a significant return of capital to shareholders post completion

Commenting on the announcement, Donal Murphy, Chief Executive of DCC plc, said today:

"The disposal of DCC Healthcare is a material step in simplifying DCC's operations and focusing on our high growth, high return, energy business. Our strategy will continue to build DCC as a market-leading multi-energy business. The profitable sale creates immediate value for our shareholders, and we are confident that Investindustrial will take DCC Healthcare forward in the best long‐term interests of its employees, customers and suppliers."

 ¹ Book value of DCC Healthcare at 30 September 2024 of c. £765 million

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 Forward-looking Statements

This announcement may contain forward-looking statements that represent DCC's expectations for its business, based on current expectations about future events, which by their nature involve risk and uncertainty. DCC believes that its expectations and assumptions with respect to these forward-looking statements are reasonable, however because they involve risk and uncertainty as to future circumstances, which are in many cases beyond DCC's control, actual results or performance may differ materially from those expressed in or implied by such forward-looking statements.

Regulatory Notes

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with DCC's obligations under Article 17 of MAR.