DCC Healthcare Announced It Is Buying Medi-Globe Technologies for $246.1M

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.

Development, Manufacture and Distribution of Single-Use Devices for Endoscopy

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 organizations 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.

Medical Technology Is Improving Patient Outcomes

Advances in medical technology need time and funds, but the outcomes for patients are better, with medical devices improving doctors and other medical specialists performances, finally bettering patient welfare. 

Centerline Biomedical, Inc. (Centerline), a private medical technology company, announced June 27th the closing of a $33 million Series B equity financing led by Cleveland Clinic with participation by GE Healthcare, RIK Enterprises, JobsOhio, Jumpstart Ventures and G2 Group Ventures. Proceeds will accelerate a robust R&D pipeline, commercial partnerships and clinical activities led by leading institutional and strategic investors. Centerline Biomedical’s system improves visualization and guidance in endovascular procedures while reducing dependence on radiation and contrast agents with the goal of improving patient outcomes, as well as overall efficiency for clinicians. Its flagship product, IOPS® (Intra-Operative Positioning System) was developed in Cleveland Clinic’s Heart, Vascular & Thoracic Institute and utilizes patented algorithms to generate a patient-specific vascular map combined with electromagnetic tracking and smart sensor-equipped surgical devices to provide real-time, 3-D color visualization and navigation of the human vascular system.

Hospitals in Illinois are also trying to keep up with medical advances and new techniques. A few years back, The Southern Illinois Healthcare Memorial Hospital of Carbondale (SIH) acquired a new top-of-the-range Da Vinci XI Robotic Surgery system, an upgrade of the system that has been in use since 2011.The Da Vinci Xi, which has four arms, has been in use since mid-January and is used by the 14 robotically-trained SIH surgeons.

The New Acquisition Furthers DCC Vital’s Growth Strategy

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 anesthesia. 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.”

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.

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.