DCC Healthcare Acquisition

23 Nov 2007 07:00

DCC PLC23 November 2007 DCC Healthcare expands in Britain DCC plc, the business support services group, announces that DCC Healthcare hasexpanded its presence in Britain through the acquisition of Squadron MedicalLimited ("Squadron"). Based in Chesterfield, Squadron procures and suppliesmedical and surgical products on a just in time basis to point of use withinhospitals. Squadron will continue to be led by Peter Wyslych, its founder andManaging Director. The initial cash consideration payable by DCC is €16.0 million (Stg£11.5million), including net cash acquired of €3.5 million (Stg£2.5 million). Furtherconsideration will be payable up to a maximum of €11.8 million (Stg£8.5 million)based on profits earned in each of the four financial years to 31 March 2012. Inits latest financial year ended 30 August 2007, Squadron had sales of €36.9million (Stg£26.5 million) and adjusted operating profits of €2.6 million(Stg£1.9 million). The value of the net tangible assets acquired at completion(inclusive of net cash) was €7.4 million (Stg£5.3 million). Jim Flavin, Executive Chairman of DCC plc, said today: "Squadron is well positioned for continued strong growth in the British hospitalsupply sector. Squadron will work closely with DCC's subsidiary Fannin, a leaderin hospital supplies in Ireland, to accelerate the development of DCCHealthcare's business in the hospital supply sector in Britain." For reference: Jim Flavin, Executive ChairmanTommy Breen, Group Managing DirectorConor Costigan, Managing Director, DCC HealthcareConor Murphy, Investor Relations Manager Telephone: +353 1 2799400Email: investorrelations@dcc.ieWeb: www.dcc.ie This information is provided by RNS The company news service from the London Stock Exchange