Disposal of Specials businesses

UDG Healthcare announces the sale of its Specials sector businesses

12 February 2014: UDG Healthcare plc ("the Group"), a leading international provider of healthcare services, announces that it has agreed to sell its "Specials" businesses and Arjun to Professional Compounding Centers of America, Inc.

The Specials businesses comprise two companies: The Specials Laboratory Holdings Limited and Craig & Hayward Limited. These companies manufacture and distribute unlicensed medicines, known as "specials" for the community pharmacy and hospital markets in the UK. Additionally, Arjun Products Limited which offers a range of dermatology creams, mineral supplements and ear & nose drops to the UK pharmacy market, will also be included as part of the transaction.

While the Group believes that these businesses have the potential to deliver strong growth over the coming years, following a strategic review it has been decided that the manufacture and distribution of specials falls outside the Group's core areas of operation. It is expected that the transaction will complete by the end of February 2014.

The total consideration of £23.5 million will be received in cash on completion. This will initially be used to reduce Group borrowings which will increase the Group's capacity to make future acquisitions in its core areas of operation. The carrying value of the assets is £33.5 million. A loss on disposal of £10 million will be recognised in the income statement in the current financial year. These businesses generated profits before interest and tax of £2.6 million during the year to 30 September 2013.

The businesses included in the transaction have provided a good investment return to the Group since its initial investment in 2007. We would like to thank our colleagues in these businesses for their contribution to the development of the Group and we wish them and the new owners every success in the future.

ENDS

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About UDG Healthcare plc:

Listed on the London Stock Exchange, UDG Healthcare plc is a leading international provider of services to healthcare manufacturers and pharmacies, with operations in 22 countries including the US, UK, Ireland and Germany.

The Group operates across three divisions: Ashfield Commercial and Medical Services, Supply Chain Services and Sharp Packaging Services.

Ashfield Commercial and Medical Services 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 division provides sales teams, telesales, nurse educators, medical information, healthcare communications and event management services to healthcare companies in 22 countries. It focuses on supporting healthcare professionals and patients at all stages of the product life cycle.

Supply Chain Services includes the United Drug Supply Chain Services and the Aquilant Specialist Healthcare Services businesses. United Drug Supply Chain Services is the largest pharmaceutical wholesaler in the island of Ireland. It is also the leading pre-wholesaler in Ireland and has achieved the No.1 position in the UK through its joint venture business UniDrug Distribution Group. The division provides logistics services to healthcare companies, pharmacies and hospitals in the UK and Ireland. Aquilant Specialist Healthcare Services is a leading provider of outsourced sales, marketing, distribution and engineering services to the medical and scientific sectors in Ireland and the UK.

Sharp Packaging Services is a leading international provider of pharmaceutical contract packaging and clinical trials materials services with facilities in the US, UK, Dutch and Belgian markets.

For more information go to: www.udghealthcare.com.