Acquires global contract sales outsourcing company

Embargoed until 7.00am

26-7-12

United Drug acquires global contract sales outsourcing company from Celesio

UDG.I UDG.L

Dublin and London/ Stuttgart, Germany, 26 July 2012: United Drug plc ("UD" or the "Group"), a leading international provider of services to healthcare manufacturers and pharmaceutical retailers today announced that it has reached agreement to acquire the entire issued share capital of Pharmexx GmbH ("Pharmexx") from Celesio AG, a leading international trading company and provider of logistics and services in the pharmaceutical sector, for €35 million. The acquisition is expected to complete by 31 August 2012 following receipt of the necessary regulatory clearances.

Transaction highlights

·; Employing over 2,300 people, Pharmexx operates in 18 countries across Europe, North and South America and the acquisition clearly establishes UD as one of the leading global contract sales outsourcing companies.

·; The net assets being acquired are €8.3 million and on completion the business will be integrated into the Group's Sales, Marketing & Medical division.

·; €28.7m of the consideration is payable in cash on completion, inclusive of the net cash and other liability items being taken over

·; The acquisition will be financed from UD's internal resources and existing debt facilities.

Pharmexx

Pharmexx is headquartered in Stuttgart in Germany and provides contract sales outsourcing services to global pharmaceutical manufacturers. These services are provided through subsidiary operations across Europe and in Canada and through minority shareholdings in businesses in Brazil and Argentina.

Speaking about the acquisition today, United Drug's Chief Executive, Liam FitzGerald said:

"We are delighted to announce the acquisition of Pharmexx. The acquisition is a major step forward in our ambition to become the leading global provider of contract sales outsourcing services to the pharmaceutical industry. It is also another significant milestone in the development of United Drug into a truly international provider of outsourced services to healthcare manufacturers".

ENDS Thursday, 26 July 2012

For reference:

Liam FitzGerald Pauline McAlester

Barry Mc Grane

United Drug plc Murray Consultants

Tel: +353-1-4632300 Tel: +353-1-4980300

About United Drug plc

Listed on the Stock Exchanges in London and Dublin, United Drug is a leading international provider of services to healthcare manufacturers and pharmaceutical retailers, with operations in the UK, Ireland, the Netherlands, Belgium, and the USA. 

The Company operates across three divisions, Healthcare Supply Chain, Sales, Marketing & Medical, and Packaging & Specialty.

In Healthcare Supply Chain, United Drug is the largest pharmaceutical wholesaler in the island of Ireland. It is also the market leader in contract distribution outsourcing (pre-wholesaling) in Ireland and has achieved the No. 1 position in the UK through its joint venture business UniDrug Distribution Group (UDG). The Company provides specials medicines manufacturing and distribution services in the UK. Through its medical & scientific operations, United Drug provides sales & marketing and technical service solutions, including contract distribution services to a wide range of medical & scientific equipment & consumable manufacturers, with a market leading position in Ireland and an emerging presence in the UK.

In the Sales, Marketing & Medical division United Drug is the leading provider of contract sales outsourcing services to pharmaceutical manufacturers in the UK and Ireland and has a growing presence in the US market. United Drug also provides related marketing services to pharmaceutical manufacturers in each of these markets.

In the Packaging & Specialty division United Drug is a leading international provider of pharmaceutical contract packaging services with facilities in the US, UK, Dutch and Belgian markets. The Company also provides speciality distribution and homecare services in the UK and Ireland.

For more information go to www.united-drug.com. 

About Celesio Group

Celesio is a leading international trade, logistics and service company working in the pharmaceutical and healthcare sector that proactively and preventatively ensures that patients receive optimum care and support. The company operates in 27 countries worldwide and employ around 46,000 people. With more than 2,200 of its own and 4,500 partner and brand partner pharmacies, they look after more than two million customers daily. The company supplies around 65,000 pharmacies and hospitals with up to 130,000 medications through approximately 140 branches.