18th Nov 2008 14:45
United Drug acquires UK based specials manufacturer
UDG.I UDG.L
United Drug plc ("UD" or the "Group"), a leading international provider of services to healthcare manufacturers and pharmaceutical retailers today announced that it has acquired the entire issued share capital of The Specials Laboratory Holdings Limited ("TSL" or "The Company") for a consideration of £20.1 million.
Transaction highlights
The acquisition enhances UD's position in the growing specials market in the UK and provides the Group with high quality manufacturing capability. The consideration of £20.1 million in cash is payable on completion with an additional amount of up to £4.5 million payable based on agreed profit targets over the next 2 years. The acquisition will be financed from UD's internal resources and existing debt facilities. The transaction is expected to be immediately accretive to UD earnings.The Specials Laboratory
TSL, is based in Prudhoe, Northumberland, near Newcastle-upon-Tyne. The Company manufactures unlicensed medicines, otherwise known as "specials" for the retail pharmaceutical and hospital markets in the UK. The Company employs 120 people across 3 MHRA approved sites and is a market leader in the UK specials manufacturing market.
TSL will be integrated into the Group's Pharma Wholesale business and reflects the Group's continuing drive to develop higher margin, value added services.
Speaking about the acquisition today, United Drug's Chief Executive, Liam FitzGerald said:
"We are delighted to announce the acquisition of The Specials Laboratory. The acquisition continues our development as an international healthcare services company. TSL has an excellent management team and operates off an extremely high quality platform to manufacture product to meet specific patient prescription requirements. The Company will enhance our existing capability as a distributor in the growing UK specials market."
United Drug will report 2008 FY results on Friday, 21 November, 2008.
| ENDS | Tuesday, 18 November 2008 | |
| For reference: | ||
| Liam FitzGerald | Pauline McAlester | |
| United Drug plc | Murray Consultants | |
| Tel: +353-1-4598877 | Tel: +353-1-4980300 | |
| Investors and Analysts | ||
| Mark Kenny/Jonathan Neilan | ||
| K Capital Source | ||
| Tel: +353-1-6315500 |
About United Drug plc
United Drug is a leading international provider of services to healthcare manufacturers and pharmaceutical retailers, with operations in the UK, Ireland, Holland, Belgium and the USA. The Company has a long-term track record of delivering double-digit profit, earnings and dividend growth. Over the last 20 years pre-tax profits have grown at a compound annual rate of 21%.
The Company operates across three divisions, Healthcare Supply Chain, Packaging & Speciality Services, and Contract Sales & Marketing Services.
United Drug is the largest pharmaceutical wholesaler in the island of Ireland. It is 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 (UDG). Through its Medical & Scientific business, United Drug provides sales & marketing and technical service solutions, including contract distribution services to Medical & Scientific equipment & consumable manufacturers, with a market leading position in Ireland and an emerging presence in the UK.
The Company provides distribution related services in the areas of pharmaceutical contract packaging and speciality distribution in the UK, Holland and Belgium.
United Drug is also a leading provider of contract sales outsourcing and related marketing services to pharmaceutical manufacturers in the UK and Ireland and also provides these services in the US market.
Copyright Business Wire 2008
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UDG.L