Last checked at 17 Jun 2010 14:15
17 June 2010
DCC disposes of its Mobility & Rehabilitation business
DCC plc, the business support services group, announces that it has agreed to dispose of its Mobility & Rehabilitation business ("DCC M&R") to Patterson Medical, the world's leading distributor of rehabilitation and sports medicine products which is a division of the US listed group, Patterson Companies, Inc. (Nasdaq NM: PDCO).
The assets being disposed of by DCC comprise DCC's 94% shareholding in Physio Med Services Limited, DCC's 60% shareholdings in Ausmedic Australia Pty Limited and Metron Holdings Pty Limited and the business, net tangible assets and goodwill of DCC's wholly owned subsidiary, Days Healthcare UK Limited*. The total consideration, payable in cash, for DCC M&R, including amounts payable to the minority shareholders, is €37 million (Stg£31 million) on a cash free / debt free basis, subject to an adjustment to reflect normalised net working capital.
The pre tax cash impact on DCC, net of minorities, costs and anticipated adjustments for normalised net working capital, is expected to be approximately €30 million (Stg£25 million) which is in line with the DCC balance sheet carrying value of the net tangible assets and goodwill that are being disposed of. DCC M&R accounted for less than 1% of the DCC Group's operating profit in the financial year ended 31 March 2010.
Tommy Breen, Chief Executive of DCC, said today:
"The disposal of DCC Mobility & Rehab is consistent with our strategy to concentrate the focus of DCC Healthcare on our larger healthcare businesses, DCC Hospital Supplies & Services and DCC Health & Beauty Solutions, which have strong leadership positions and significant opportunities for organic and acquisition growth."
For reference, please contact
Tommy Breen, Chief Executive
Conor Costigan, Managing Director, DCC Healthcare
Conor Murphy, Investor Relations Manager
Tel: +353 1 2799400
Email: investorrelations@dcc.ie
Web: www.dcc.ie
*DCC will continue to own the corporate entity, Days Healthcare UK Limited, which is vigorously pursuing enforcement proceedings before the Courts in Taiwan against Pihsiang Machinery Manufacturing Co. Limited (a Taiwanese public company), Donald Wu (its Chairman and major shareholder) and Jenny Wu (his wife and director) to recover damages, costs and interest amounting to €27 million (Stg£22 million) awarded to Days by the UK High Court in 2004. Days Healthcare UK Limited will remain the legal entity with the right to seek the enforcement and recognition of these judgements.