Latest news with #Investindustrial
Irish Times
10-07-2025
- Business
- Irish Times
DCC still sees remaining businesses growing this year despite initial earnings dip
DCC , the Irish conglomerate seeking to narrow its focus to energy, said it still sees its remaining businesses posting 'good operating profit growth' in the financial year to next March, even though its first-quarter earnings were 'modestly behind' the same period last year. The company confirmed in a trading statement ahead of its annual general meeting (AGM) on Thursday that it remains on track to complete a deal to sell its healthcare unit to HealthCo Investment, which is owned by funds run or advised by London-based private equity firm Investindustrial Advisors. This would be for a total enterprise value of £1.05 billion (€1.22 billion) by the end of September. The deal includes £130 million in deferred payments, payable within two years, leases, taxes owing and other liabilities transferring with the sale. Founded in 1976 by businessman Jim Flavin as a provider of venture capital for start-ups before floating almost two decades later, DCC revealed in November it was ditching its conglomerate roots with a plan to sell its healthcare division and review 'strategic options' for its technology business, in order to focus on its energy unit. READ MORE DCC is widely expected to sell its technology operations in two transactions as early as next year, following a restructuring of its businesses. [ DCC seen getting £633m for tech unit – over a third lower than some initial estimates Opens in new window ] 'In the seasonally less significant first quarter of the year, group operating profit on a continuing basis was in line with expectations and modestly behind the prior year,' DCC said in the statement. 'Energy traded in line with expectations and modestly below the prior year while DCC Technology traded in line with the prior year.' Stockbroker Goodbody said in a note to clients this week that it estimates DCC will end up securing just £633 million (€733.4 million) for its technology division. The figure is about a fifth less than the £800 million Goodbody analyst Kenneth Rumph had originally expected the business to achieve when DCC said in November that it was examining 'strategic options' for it. It is substantially below estimates of more than £1 billion that some investment houses, including Deutsche Numis, had initially put on the division. Goodbody's revised estimate follows a weak set of annual results for the division, revealed in group results in May and mounting concerns about the impact of tariffs and cautious consumers on its key US business. DCC also took a series of charges against assets in the division last year in an effort to restructure it and prepare it for sale. 'Our simplification strategy is progressing to plan,' DCC chief executive Donal Murphy said. 'Our ambition is to be a global leader in the sales, marketing and distribution of energy products and services, delivering high growth and high returns for our shareholders.' DCC confirmed that its chief financial officer of five years, Kevin Lucey, will become chief operating officer after the AGM. He will be succeeded in the finance role by Conor Murphy, formerly CFO of the energy unit.
Irish Times
09-07-2025
- Business
- Irish Times
DCC seen getting £633m for tech unit – over a third lower than some initial estimates
DCC , the Irish conglomerate seeking to narrow its focus to energy, may end up securing just £633 million (€733.4 million) for its technology division, according to Goodbody Stockbrokers . The figure is about a fifth less than the £800 million Goodbody analyst Kenneth Rumph had originally expected the business to achieve when DCC said in November that it was examining 'strategic options' for it. It is substantially below estimates of more than £1 billion that some investment houses, including Deutsche Numis, had initially put on the division. Goodbody's revised estimate comes in advance of DCC's annual general meeting (agm) on Thursday, and follows a weak set of annual results for the division, revealed in group results in May and mounting concerns about the impact of tariffs and cautious consumers on its key US business. READ MORE Founded in 1976 by businessman Jim Flavin as a provider of venture capital for start-ups before floating almost two decades later, DCC revealed in November it was ditching its conglomerate roots with a plan to sell its healthcare division and review 'strategic options' for its technology business, in order to focus on its energy unit. DCC, led by Donal Murphy , agreed last month to sell the healthcare unit to HealthCo Investment, which is owned by funds run or advised by London-based private equity firm Investindustrial Advisors for £945 million in cash, plus £130 million in deferred payments. Leases, taxes owing and other liabilities transferring with the healthcare unit bring the total enterprise value of the transaction to £1.05 billion. That deal fell well short of the £1.3 billion to £1.6 billion some analysts had expected. The tech unit, which distributes audiovisual equipment to events companies and consumer tech gadgets, saw operating profits fall almost 16 per cent in the group's financial year to the end of March, dragged down by weak household demand for tech products. DCC also took a series of charges against assets in the division last year in an effort to restructure it and prepare it for sale. The division booked a £52 million charge against the loss-making French and Iberian arms of its Exertis business, which distributes tech gadgets from home security cameras to wireless keyboards. It also agreed in April to sell two units for what it called 'a modest consideration', and exited small tech distribution businesses in the Middle East and Scandinavia. DCC also took an almost £74 million goodwill impairment hit against its UK information technology business. A profit recovery in the business 'has taken longer than expected', it said, with market conditions 'showing little sings of improving'. The bulk of £37 million in restructuring costs racked up by DCC last year covered large 'optimisation and integration' projects in its technology division in North America and the UK. A number of analysts expect that DCC will sell the technology unit in two separate deals.
Arab News
17-06-2025
- Business
- Arab News
SIC, Investindustrial forge alliance to drive Saudi industrial expansion
RIYADH: SIDF Investment Co., the financial arm of the Saudi Industrial Development Fund, has entered into a strategic partnership with European private equity firm Investindustrial, marking its first international private equity commitment. The agreement is aimed at catalyzing new industrial investments in the Kingdom by localizing advanced manufacturing and integrating Saudi small and medium-sized enterprises into Investindustrial's global value chains. The partnership is a significant milestone for SIC as it broadens its international engagement and supports Saudi Arabia's Vision 2030 objectives. These include attracting institutional capital, localizing industrial expertise, and contributing to the National Industrial Strategy, which targets increasing the number of factories to 36,000 by 2035. The announcement follows a previous agreement in March between SIC and Ashmore Investment Saudi Arabia to launch a private closed-end industrial fund. The SR400 million ($106.6 million) initiative — the first of its kind in the Kingdom — is managed by a global asset manager and aims to support a wide array of industrial assets. That move laid the foundation for SIC's private equity strategy to stimulate domestic investment and expand global partnerships. 'This agreement represents a new chapter for SIC,' said Fahad Al-Naeem, CEO of SIC. 'By partnering with Investindustrial, we're bridging global reach, operational depth, and industry specialization into our ecosystem, positioning Saudi Arabia as the platform for regional and international manufacturing growth.' The targeted sectors include machinery and equipment, automation, medical devices, and sustainable consumer products, with an emphasis on local value creation and industrial innovation. This move comes as the Kingdom ramps up efforts to strengthen its industrial base and draw international investment into strategic sectors. In April, Saudi Arabia's Industrial Production Index rose 3.1 percent year on year, led by gains in manufacturing and mining. Manufacturing activity alone climbed 7.4 percent annually, with a 0.5 percent uptick month on month. Adding to this momentum, the government launched the Standard Incentives for the Industrial Sector program in May, offering up to 35 percent financing on initial capital expenditure per project, capped at SR50 million. The initiative supports facility development and operations over a seven-year term. 'SIC will utilize its local market expertise to pave the way for global manufacturers to establish a footprint in Saudi Arabia and connect with international supply chains, benefiting from the Kingdom's competitive position,' Al-Naeem added. Investindustrial, which has raised €17 billion and operates across eight global offices, focuses on mid-market companies with a mission to drive sustainable value creation and support global expansion. 'The Kingdom of Saudi Arabia has emerged as a key strategic growth region for Investindustrial's portfolio companies,' said Andrea Bonomi, chairman of Investindustrial. 'Many of our investments align closely with the goals of Saudi Arabia's Vision 2030, fostering strong and natural synergies for long-term value creation,' Bonomi added. The signing ceremony was attended by Prince Sultan bin Khaled, vice chairman of SIC, and Italy's Ambassador to Saudi Arabia, Carlo Baldocci, reflecting the high-level support backing the agreement. The deal further advances SIC's role as a gateway for institutional-grade industrial investment into Saudi Arabia, reinforcing its mandate to help build a globally competitive and resilient manufacturing sector.
Khaleej Times
03-06-2025
- Business
- Khaleej Times
ADGM posts stellar Q1 with 33% surge in assets under management
Abu Dhabi Global Market (ADGM), the UAE capital's international financial centre, kicked off 2025 with an impressive first quarter, reinforcing its position as a global powerhouse for finance and innovation. With a 33 per cent surge in assets under management (AUM), 119 fund and asset managers now oversee 184 funds, a significant leap from last year. The number of operational entities soared by 43 per cent to 2,781, while financial services firms grew by 26 per cent to 367. New licences issued jumped 67 per cent compared to Q1 2024, highlighting ADGM's growing appeal to global businesses. This growth reflects Abu Dhabi's status as a trusted destination for investors, driven by ADGM's transparent regulatory framework, which directly applies English common law — a rarity in the region. This legal clarity, combined with strategic initiatives, has attracted top-tier firms like Skadden, Investindustrial, and Polen Capital to set up shop. The expansion to Al Reem Island has been a game-changer, with over 600 new businesses established and 500 existing companies transitioning to ADGM licences, bringing the total to 1,100 new entities. A revised fee structure, slashing commercial licence costs by 50 per cent to a flat Dh1,000, has made it easier for small and medium enterprises (SMEs) to thrive. ADGM's workforce on Al Maryah Island grew by 17 per cent to over 29,000, with 3,509 new work permits issued for Al Reem Island businesses. New Employment Regulations introduced in Q1 enhance workplace protections while maintaining business flexibility, solidifying ADGM's appeal as a talent hub. The ADGM Academy furthered this by creating 800 job opportunities for UAE nationals across nine specialized tracks, supported by 23 global certifications. Strategic partnerships with Arab Youth and the Federal Tax Authority are empowering young talent and aligning with national goals. Globally, ADGM's outreach has strengthened its role as a financial bridge. In January, a delegation engaged hedge funds and private equity leaders at iConnections Global Alts Miami, highlighting Abu Dhabi's access to sovereign wealth capital. In February, ADGM joined a high-level mission to China, fostering ties as UAE-China trade is projected to boom. In April, meetings with Japanese financial institutions focused on wealth management and family businesses, signaling ADGM's growing influence in Asia. Innovation is at ADGM's core. A new mobile app launched in Q1 offers real-time regulatory updates, compliance tools, and networking features, while a digital platform for real estate transactions enables fully virtual processes—a first in the region. ADGM's focus on blockchain is evident through a partnership with Chainlink to develop compliant tokenisation frameworks and the integration of firms like Stacks Asia into its Distributed Ledger Technology framework, positioning Abu Dhabi as a blockchain hub. Sustainable finance is another priority, with the Abu Dhabi Sustainable Finance Declaration gaining 170 signatories, including Aquila Capital and PwC, promoting environmental, social, and governance (ESG) principles. The ADGM Research Centre's six papers on AI's role in finance underscore its commitment to cutting-edge technology. Ahmed Jasim Al Zaabi, ADGM chairman, said, 'ADGM's Q1 2025 performance reflects the trust global institutions place in us, boosting Abu Dhabi's status as a financial and innovation hub. As the world's safest and most dynamic jurisdiction for asset management, we're driving sustainable growth and digital transformation.'
Daily Mail
13-05-2025
- Business
- Daily Mail
DCC to hand investors £800m from sale of healthcare arm
DCC plans to return £800million to shareholders following the disposal of its healthcare division. The support services business last month agreed to offload its healthcare arm for £1.1billion to HealthCo Investment, a subsidiary of European private equity group Investindustrial Advisors. Although DCC expects to complete the deal in the third quarter of 2025, it intends to soon start a £100million share buyback scheme as part of the divestment process. Another £600million will be handed out once the disposal is finalised, while another £100million will be delivered after DCC receives a deferred payment of £130million within two years. DCC made the announcement alongside results showing its pre-tax profits slumped by 17.9 per cent to £294.9million in the year ending March. Adjusted operating profits in its technology segment plummeted by 15.7 per cent to £82million due to weak demand for consumer tech products across the UK and Europe in its information tech operations. However, they rose by 6.5 per cent to £535.5million in the group's energy business despite lower average commodity prices dragging DCC's overall turnover down by 4.5 per cent to £18billion. DCC Energy benefited from strong organic growth and takeovers, including Irish vehicle telematics provider Cubo and solar energy companies Wirsol and Acteam ENR. Donal Murphy, chief executive of DCC, said: 'We are pleased to report that we delivered another year of good growth, while making strategic progress to simplify the group to focus on our opportunity in energy. 'Our sale of DCC Healthcare enables a material return of capital to shareholders. We will focus our efforts on energy, our largest and highest-returning business.' Founded as Development Capital Corporation in 1976, DCC announced plans last November to break up the business to focus on the energy sector. Among the services provided by the company's energy division are liquid gas and fuel distribution, solar panel installation, and retail forecourts. Russ Mould, investment director at AJ Bell, said: 'DCC's future is in the energy sector, and it's fortunate that part of its business was the strongest. 'In a way, it justifies the decision to slim down. 'The problem child was the technology division, which is a concern given that DCC is on a mission to improve performance before selling the business. It needs to work fast to whip the tech arm into shape.' DCC shares were 4.5 per cent down at £48.44 on late Tuesday morning, making them the FTSE 100's biggest faller.
