Acquisition of medical communications company

United Drug acquires global medical communications company

UDG.I UDG.L

Dublin and London, 26 June 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 acquired the entire issued share capital of Watermeadow Medical Limited and Watermeadow Medical Consulting Inc.("Watermeadow" or the "Company") for a total consideration of up to £13 million.

Transaction highlights

·; The acquisition enhances UD's medical communications capability and global offering for our international pharmaceutical manufacturer customers.

·; £6 million of the consideration is payable in cash on completion with an additional amount of up to £7 million payable based on achievement of 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.

Watermeadow

Watermeadow is a leading healthcare communications and consultancy agency headquartered in the UK with offices also in the US. The Company employs 74 people and provides services to global pharmaceutical companies. These services include medical writing and preparation of promotional and educational materials typically for products pre-launch.

All of the employees will remain with the business and Watermeadow will be integrated into the Group's Sales, Marketing & Medical division.

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

"We are delighted to announce the acquisition of Watermeadow. The acquisition will allow us to continue to grow our medical communications business as we seek to broaden the range of services we provide to our international pharmaceutical manufacturer customers. Watermeadow has an excellent reputation in the market and I am delighted to welcome them to the Group".

ENDS Tuesday, 26 June 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.