DCC Regulatory News (DCC)

7 February 2018

DCC Healthcare announces first acquisition in US Health & Beauty sector

DCC plc, the leading international sales, marketing and support services group, announces that DCC Health & Beauty Solutions has acquired Elite One Source Nutritional Services, Inc ('Elite'), a provider of contract manufacturing and related services to the growing healthcare and dietary supplements market in the US.

Elite focuses on complex-formulation nutritional products in tablet and capsule dosage forms, including organic and probiotic products, across a variety of packaging formats. Elite's service offering encompasses product development, formulation, manufacturing, packaging and regulatory services. Its customer base includes some of the leading specialist brands in the US consumer healthcare market. Elite's facilities in Missoula, Montana are well-invested with significant scope to expand capacity to meet its organic growth plans. The facilities comply with FDA cGMP (current Good Manufacturing Practices) and Health Canada standards and are certified by leading third party regulatory bodies including NSF and USDA Organic. The business is led by an experienced management team and employs 180 people.

The consideration, based on an enterprise value of $50 million (£35 million), was paid in cash on completion. Elite is expected to generate a return on capital employed of approximately 15% within the first two years of ownership.

Donal Murphy, Chief Executive of DCC plc, said today:

"DCC Health & Beauty Solutions has an excellent track record of organic growth, providing high-quality services to leading health and beauty brand owners, specialist retailers and direct sales organisations in the European market.

We are excited by the acquisition of Elite, which provides an entry into the US market, the world's largest healthcare and dietary supplements market. The US is an innovative, high-growth market, with a fragmented contract manufacturing base, which offers DCC significant opportunities for organic and acquisitive growth."

For reference:

Donal Murphy, Chief Executive

Fergal O'Dwyer, Chief Financial Officer

Kevin Lucey, Head of Capital Markets

Telephone: +353 1 2799400

Email: investorrelations@dcc.ie

Web: www.dcc.ie

Powerscourt (Media)

Lisa Kavanagh / Victoria Palmer-Moore

Telephone: +44 20 7250 1446

Email: DCC@powerscourtgroup.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, Healthcare and Technology.

DCC is an ambitious and entrepreneurial business operating in 15 countries, supplying products and services used by millions of people every day throughout Europe. 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 10,000 people, DCC's four divisions are:

· DCC LPG - a leading LPG sales and marketing business with operations in Europe and Asia and a developing business in the retailing of natural gas and electricity;

· DCC Retail & Oil - a leader in the sales, marketing and retailing of transport fuels and commercial fuels, heating oils and related products and services in Europe;

· DCC Healthcare - a leading healthcare business, providing products and services to healthcare providers and health and beauty brand owners; and

· DCC Technology - a leading European sales, marketing and services partner for global technology brands.

DCC plc is listed on the London Stock Exchange and is a constituent of the FTSE 100. In its financial year ended 31 March 2017, DCC generated revenue of £12.3 billion and operating profit of £345 million.

DCC has an excellent record, delivering compound annual growth of 14% in operating profit and generating an average return on capital employed of approximately 19% over 23 years as a public company.

About DCC Healthcare

DCC Healthcare is a leading healthcare business, providing products and services to healthcare providers and health and beauty brand owners. DCC Healthcare operates through two businesses, DCC Vital and DCC Health & Beauty Solutions. DCC Vital markets and sells medical and pharmaceutical products to healthcare providers across all sectors of the healthcare market in the UK and Ireland. DCC Health & Beauty Solutions builds long-term partnerships with international brand owners, providing specialist services including product development, formulation, manufacturing and packaging.