Acquisition of healthcare marketing business

United Drug acquires Canadian multi-channel healthcare marketing business

30 August 2013: United Drug plc ("Group"), a leading international provider of healthcare services, announces that it has reached an agreement to acquire the healthcare multi-channel marketing, call centre and sample management businesses from Medical Communications Group Inc. ("MCG"), for a total consideration of CAD$15.5m [c€11.2m]. The deal is expected to complete in the next six weeks, subject to the fulfilment of usual closing considerations.

Transaction highlights

· MCG is a leading multi-channel healthcare marketing business headquartered in Montreal, which provides outsourced services to over 60 pharmaceutical and healthcare companies in Canada.

· MCG specialises in multi-channel marketing, communications and sample and promotional material management services. The business was established in 1986 and currently employs c.60 people.

· United Drug has acquired MCG to build out its commercial proposition in Canada. This follows the acquisition of Pharmexx Canada, as part of its acquisition in 2012 of Pharmexx (the global Contract Sales Organisation). MCG will become part of the Sales, Marketing and Medical division of United Drug (which is known as the Ashfield division) and the existing management of MCG will remain with the business post-acquisition.

· The acquisition will be financed from the Group's internal resources and existing debt facilities and is expected to be earnings accretive in year one.

Commenting on the announcement, Liam FitzGerald, Chief Executive of United Drug said: 

"The acquisition of MCG is another example of United Drug bolting on complementary businesses to build scale, where we already have an existing market presence. MCG has established a reputation over many years as a highly innovative provider of promotional services and the MCG expertise in multi-channel marketing complements the field based capabilities of Pharmexx. With our combined resources and expertise we look forward to building a market leading service offering in Canada."

ENDS

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Notes to Editors:

About United Drug plc:

Listed on the London Stock Exchange, United Drug is a leading international provider of services to healthcare manufacturers and pharmaceutical retailers, with operations in over 20 countries including the US, UK, Ireland, Germany, the Netherlands and Belgium.

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

In the Sales, Marketing & Medical division United Drug is a global leader in the provision of contract sales outsourcing services to pharmaceutical manufacturers with operations in major markets including Continental Europe, the UK, North America and a presence in South America and Asia. The Group also provides related marketing services to pharmaceutical manufacturers in many of these markets.

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. The Company provides specials medicines manufacturing and distribution services in the UK. Through its medical & scientific operations, the Group 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 the UK.

In the Packaging & Specialty division United Drug is a leading international provider of pharmaceutical contract packaging and clinical trials materials 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 Ashfield

Ashfield was established 15 years ago and is a leading international provider of contract sales services including field based sales teams, call centre services and multi-channel sales and marketing solutions. Ashfield is part of the Sales, Marketing and Medical division of United Drug (known as the Ashfield division).

About MCG

MCG is a leading healthcare marketing business based in Montreal, which provides outsourced services to a wide range of pharmaceutical companies in Canada. The family-owned business was founded by Daryl Erickson in 1986, after a career in pharmaceuticals with such companies as Abbott Laboratories and Horner Pharmaceuticals. The company currently employs 60 people at its head office in Pointe-Claire, Quebec.

MCG has developed a range of ingenious marketing and communication services over the years and works with many of the leading multinational pharmaceutical companies in Canada.