12th Feb 2014 10:10
LONDON (Alliance News) - Healthcare services provider UDG Healthcare PLC Wednesday said it has agreed to sell its "Specials" businesses and Arjun Products Ltd to Professional Compounding Centers of America Inc in a deal worth GBP23.5 million.
The specials businesses comprises two companies - The Specials Laboratory Holdings Ltd and Craig & Hayward Limited. Both manufacture and distribute unlicensed medicines, known as "specials" for the community pharmacy and hospital markets in the UK.
Arjun Products Ltd, on the other hand, offers a range of dermatology creams, mineral supplements and ear-and-nose drops to the UK pharmacy market.
The company said it believes these companies have the potential to deliver growth going forward, but after a strategic review decided that the businesses fall outside its core areas of operation.
The carrying value of the assets is GBP33.5 million. A loss on disposal of GBP10 million will be recognised in the income statement in the current financial year, UDG said.
UDG said it expects the transaction to be completed by the end of the month.
The company plans to issue its results for the six months ending March 31 on May 14.
The stock was trading at 333.70 pence Wednesday morning, 1.70 pence or 0.5%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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