DCC sells healthcare business for €37m

Dublin-listed company DCC has sold its Mobility & Rehabilitation business for €37 million (Stg£31 million) to US company Patterson Medical.

The business is part of DCC's healthcare division.

The assets being disposed of by DCC comprise DCC's 94 per cent shareholding in Physio Med Services Limited, DCC's 60 per cent 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.

DCC's Mobility & Reconciliation business accounted for less than 1 per cent of the DCC Group's operating profit in the financial year ended 31 March 2010.

DCC's Chief Executive Tommy Breen said that the disposal of DCC Mobility & Rehab is "consistent with the company's strategy to concentrate the focus of DCC Healthcare on its larger healthcare businesses, DCC Hospital Supplies & Services and DCC Health & Beauty Solutions, businesses which have strong leadership positions and significant opportunities for organic and acquisition growth."

Last month the business support services company reported a 20 per cent growth in pretax profits for the year ended March 31st, 2010, beating estimates and analysts’ expectations.

On a constant currency basis, overall pretax profit was up 27 per cent to €164.9 million. Operating profit rose by 6.9 per cent – 12.8 per cent on a constant currency basis to €192.8 million.

Pretax profits before exceptionals and amortisation was up 14.1 per cent at €182.1 million and 20.7 per cent stronger on a constant currency basis.

The company’s energy division – which constitutes almost 60 per cent of profits – was the main driver of growth.