The acquisition of Amerilab is DCC Health & 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.

Amerilab specializes in the manufacture of effervescent nutritional products in powder and tablet formats, which are packed in stick packs, sachets and tubes. Its service offering includes product development, formulation, manufacturing, packaging and regulatory services. Amerilab operates from a large, well invested facility, which complies with FDA cGMP (current Good Manufacturing Practices) and is certified by leading international regulatory bodies, NSF and the

TGA (Australia's Therapeutic Goods Association). In recent years Amerilab has invested in high­-speed, automated equipment, enhancing its operational efficiency and increasing manufacturing capacity. Amerilab's customer base consists of high quality consumer healthcare companies, specialty brand owners and direct sales organizations. 

Effervescents are a higher growth product segment within the US nutritional market, with an attractive demographic characteristics and environmental credentials. Amerilab's complementary effervescent capability will create opportunities for cross selling and other synergies with DCC Health & Beauty Solutions.

 The business, which employs 125 people and has revenues of approximately $68 million, will continue to be led by its experienced management team. DCC is acquiring Amerilab based on an enterprise value of approximately $85 million (£72 million) and the business is expected to generate returns consistent with the existing Health & Beauty business within two years. The majority of the consideration was paid in cash on completion from DCC's extensive resources, with the balance representing contingent and earn-­out related considerations. 

An integral part of DCC's strategy since foundation has been the maintenance of a strong and liquid balance sheet. DCC will shortly close the financial year ending 31 March 2020 with a very modest level of net debt, substantial 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. This significant financial strength, alongside DCC's diversified, robust business model, leaves DCC very well placed to continue its growth and development into the future. 

Donal Murphy, Chief Executive of DCC plc, said today: "DCC Health & Beauty Solutions provides high quality services to leading health and beauty brand owners and direct sales organizations. 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. We believe this market will benefit from current events as consumers are likely to be increasingly conscious of their health and wellbeing. 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. Notwithstanding this significant growth in the region, our market shares remain low and DCC has created ideal platforms for further growth and development in these growing, fragmented, markets."