DCC Regulatory News (DCC)

8 September 2022

DCC Healthcare significantly expands in medical devices with its largest acquisition to date

Scale platform in European medical devices sector

DCC plc, the leading international sales, marketing, and support services group, announces that DCC Healthcare has agreed to acquire Medi-Globe Technologies GmbH ("Medi-Globe"), an international medical devices business focused on minimally invasive procedures. 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 on from the acquisition of primary care supplier Wörner Medical in May 2021.

The acquisition is based on an enterprise value of approximately €245 million (£213 million) on a cash-free, debt-free basis and the consideration will be settled in cash on completion. The acquisition is expected to generate a mid-teen return on capital employed in three years. The transaction is subject to competition authority approval in Germany and France and is expected to complete in calendar Q4 2022.

Medi-Globe, founded in 1990, is involved in the development, manufacture and distribution of single-use devices for endoscopy in diagnostic and therapeutic procedures. The business has grown organically and through bolt-on acquisitions to become a leading 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 approximately 600 people. Its products are sold to hospitals and procurement organisations in over 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 strong development pipeline of innovative proprietary products. Medi-Globe sources its products from high quality manufacturers, as well as its own cleanroom facility in Czechia. Its highly experienced management team will continue to lead the business from its headquarters in Bavaria, Germany.

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 the areas of minimally invasive surgery, cardiac monitoring and anaesthesia. The addition of Medi-Globe creates an international platform of scale in single-use devices with high-quality product development, regulatory and manufacturing capability; direct sales and marketing infrastructure in eight countries and an extensive international distributor network. The acquisition will provide meaningful synergy opportunities, in particular through leveraging DCC Vital and Medi-Globe's respective product portfolios and commercial infrastructures.

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

"We are delighted to welcome Medi-Globe into the DCC Group. The synergistic acquisition of Medi-Globe significantly expands and enhances DCC Vital's position 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.

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."

Presentation - audio webcast and conference call details:

DCC will host an audio webcast and conference call for analysts and institutional investors at 09:00 BST today, 8 September 2022. The slides for this presentation can be downloaded from DCC's website: www.dcc.ie. The access details for the presentation are as follows:

Ireland: +353 (0) 1 536 9584

UK: +44 (0) 2039 362 999

International: +44 (0) 2039 362 999

Passcode: 981365

Webcast Link: https://www.investis-live.com/dcc/62d564d4d943801400a29223/ddcc

A replay of the webcast and transcript will be made available at www.dcc.ie shortly after the event.

Contact information

Investor enquiries:

Kevin Lucey, Chief Financial Officer Tel: +353 1 2799 400

Hollie Daly, Investor Relations Manager Email: investorrelations@dcc.ie

Media enquiries:

Powerscourt (Eavan Gannon/Genevieve Ryan) Tel: +44 20 7250 1446

Email: DCC@powerscourt‐group.com

About DCC plc

DCC is a leading international sales, marketing and support services group with a clear focus on sustainable growth. DCC is an ambitious and entrepreneurial business operating in 21 countries, supplying products and services used by millions of people every day. 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, the Group operates across three sectors: energy, healthcare and technology, employing over 15,400 people. DCC plc is listed on the London Stock Exchange and is a constituent of the FTSE 100. In its financial year ended 31 March 2022, DCC generated revenue of £17.7 billion and adjusted operating profit of £589.2 million.

DCC has an excellent record, delivering compound annual growth of 14% in adjusted operating profit and generating an average return on capital employed of approximately 19% over 28 years as a public company.

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www.dcc.ie

About DCC Healthcare

DCC Healthcare is a leading healthcare business providing products and services to health & beauty brand owners and healthcare providers. DCC Healthcare has revenues of over £765 million and circa 2,800 employees across its operations in Britain, Ireland, USA 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 UK, Ireland and DACh from hospitals through to community care and primary care.

· DCC Health & Beauty Solutions: provision of outsourced services to international Health & Beauty brand owners principally in the Nutrition and Beauty sectors.