DCC has splashed €245m (£213m) on medical device company Medi-Globe, in the healthcare division’s biggest acquisition.
The buyout, which is still subject to competition regulatory approval in Germany and France, is expected to be completed in the final few months of the year and drum up a mid-teen return on capital over the next three years.
It is the latest deal in a year-long acquisitions spree by the Dublin-based healthcare heavyweight.
Last year, London-listed DCC – which operates across healthcare, energy and business services – committed around £600m to its mergers and acquisitions (M&A) activity, across all divisions.
Revenue soared more than a third year-on-year to £17.7bn, the group revealed in its annual results for the year to 31 March.
The £600m M&A cashpot includes the group’s overall priciest acquisition to date, of Almo for £462m under DCC’s technology arm, which was announced in December.
The healthcare division threw €80m (£69.4m) at the takeover of German primary care supplier Wörner Medical in May last.
Chief executive Donal Murphy said the deal “significantly expands and enhances” DCC’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,” he continued.
The Medi-Globe and Wörner Medical deals, alongside the Almo acquisition, form part of the group’s plan to scale its operations in “these higher growth sectors”, Murphy explained.
“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,” he added.