The new acquisition brings DCC’s total spend in the sector to almost $200 million.

International sales, marketing and support services group DCC has acquired US healthcare company Amerilab Technologies for $85m (€79m).

Based near Minneapolis, Amerilab Technologies is a specialist provider of contract manufacturing and related services in effervescent nutritional products.

“The acquisition of Amerilab significantly enhances our existing presence in the US market”

Its service offering includes product development, formulation, manufacturing, packaging and regulatory services.

The acquisition of Amerilab is DCC Health and Beauty Solutions’ third acquisition in the US market, following the acquisition of Ion Labs in November 2019 and Elite One Source in February 2018.

It is a further significant step in the execution of the strategy to build a business of scale in the world’s largest health supplements and nutritional products market.

“The US is the world’s largest health supplements and nutritional products market”

Amerilab currently employs 125 people and has revenues of approximately $68 million. The company will continue to be led by its experienced management team.

Discussing the takeover, Donal Murphy, chief executive of DCC, said; “The acquisition of Amerilab significantly enhances our existing presence in the US market. Amerilab will work closely with Ion, Elite One Source and the businesses in Europe to cross-sell the full breadth of DCC Health & Beauty Solutions’ comprehensive service offering.

“The US is the world’s largest health supplements and nutritional products market. It is also an innovative, high-growth market, with a fragmented contract manufacturing base. We continue to be excited by the significant opportunities for organic and acquisitive growth in this market.

“In just two years, DCC has built a substantial presence in North America, across three of our four divisions, representing approximately 18% of the Group’s capital employed and employing 1,800 people,” he added.

DCC said it expects to end its current financial year, which covers the 12 months to the end of March 2020, with “a very modest” level of net debt, cash resources in excess of £1.5 billion, a long-term debt profile with an average term of approximately six years, and committed debt facilities of £400 million.

By Stephen Larkin

Published: 25 March, 2020

Recommended