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DCC buys medical products supplier to extend reach in continental Europe

DCC PLC (LON:DCC) is to acquire Wörner Medizinprodukte, a supplier of medical and laboratory products to the primary care sector in Germany and Switzerland.

Established in 1991, Wörner sells a broad product range to around 20,000 customers annually, including general practitioners, primary care centres, specialist medical centres and laboratories. The business recorded revenue of about €70mln in 2020.

DCC’s purchase price puts an enterprise value (i.e. taking into account cash or debt) of around €80mln on Wörner.

DCC, a sales, marketing and support services group, said Wörner will join its DCC Vital group, a distributor of medical products to the hospital, community and primary care sectors in Britain and Ireland.

Announcing what will be seen as a bolt-on acquisition, the FTSE 100 constituent noted that Wörner has a pipeline of bolt-on acquisition opportunities of its own, and DCC will work with the German company to accelerate the execution of these opportunities.

The acquisition of Wörner will also provide a platform for the expansion of DCC Vital’s broader activities into Continental Europe, particularly in Germany, which is a large, well-funded and growing healthcare market, DCC said.

“The acquisition of Wörner represents a significant scale-up of our primary care business and extends DCC Vital’s sales and marketing activities into Continental Europe for the first time. DCC Vital is a key growth platform for DCC and has delivered strong organic growth in recent years in the sales and marketing of medical products across the primary care, community, and hospital sectors,” said Donal Murphy, the chief executive of DCC.

“DCC Vital will continue to build its business across Europe in the coming years and Wörner will provide an excellent platform for further acquisition activity, both in Germany, Europe’s largest healthcare market, and across the DACH region,” he added.

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