DUBLIN-LISTED company DCC has sold its mobility and rehabilitation business for €37 million to the Nasdaq-listed company Patterson Medical.
The mobility and rehab business comprises three separate businesses – UK-based Days Healthcare, which sells wheelchairs and other aids for the immobile; Physiomed, which manufactures physiotherapy products; and Australian company Ausmedic, in which DCC has a 60 per cent shareholding.
DCC chief executive Tommy Breen said yesterday the company was “very happy” with the price achieved. The business constituted less than 1 per cent, or less than €2 million, of the company’s operating profit last year.
Mr Breen said the disposal would allow the company to focus on the two main strands of DCC’s healthcare division, its hospital supplies and services and health and beauty businesses.
“The mobility and rehabilitation business was a very small part of our healthcare division. This disposal allows us to focus on our two core businesses in the division where we hold market leadership,” he said yesterday.
Mr Breen declined to indicate if any further sales were imminent. DCC is due to publish a trading update in mid-July to coincide with the company’s agm.
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.
Operating profit rose by 6.9 per cent – 12.8 per cent on a constant currency basis to €192.8 million. Pre-tax profit 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, boosted by an exceptionally cold winter for the second consecutive year, DCC Healthcare accounted for 11 per cent of profits last year. Almost 70 per cent of DCC’s profits last year derived from UK activities, a further 13 per cent came from international business.
