UDG Healthcare sells its 50% share of UniDrug

UDG Healthcare announces the sale of its 50% share of UniDrug

to Alliance Boots

18 August 2014: UDG Healthcare plc ("the Group"), a leading international provider of healthcare services, announces that it has sold its 50% stake in UniDrug Distribution Group Limited ("UniDrug") to its joint venture partner Alliance Boots.

Founded in 1996, UniDrug has been a very successful 50:50 joint venture between UDG Healthcare and Alliance Boots.

Transaction Highlights:

· 50% interest in UniDrug, sold to joint venture partner, Alliance Boots for a cash consideration of €82million (£66million).

· UDG Healthcare received a net after tax profit contribution from UniDrug of €5.6million in fiscal 2013. The carrying value of the UniDrug investment is €12million and a gain on disposal of €70million is estimated. The proceeds will be used for general corporate purposes and debt pay down.

UniDrug provides pre-wholesale supply chain solutions to the healthcare industry in the UK, offering specialist storage, fulfilment and distribution services. Following the disposal United Drug Supply Chain Services will remain an Alloga partner (pre-wholesaling) in the Republic of Ireland and will continue to work with Alliance Boots on this basis. We will also continue our long term relationship for wholesale service provision to Alliance Boots in both Northern Ireland and the Republic of Ireland.

Commenting on the announcement Liam FitzGerald, Chief Executive of UDG Healthcare plc said, "UniDrug has been a very successful investment for UDG Healthcare. With the on-going convergence of the pre-wholesale and wholesale markets in the UK, UniDrug has a reduced fit with UDG Healthcare's core Supply Chain Services operations in the Republic of Ireland and Northern Ireland. The opportunity to exit the joint venture allows UDG Healthcare to release over €80million to both reduce debt and for further investment in areas of our business which fit strategically with the future development of the Group.

We would like to thank our colleagues in UniDrug for their contribution to the development of the Group and we wish them and Alliance Boots every success in the future."

ENDS

For Enquiries:

Notes to Editors:

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 outsourced multi-channel communications to healthcare professionals and patients. Ashfield has 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. The division provides logistics services to healthcare companies, pharmacies and hospitals in the UK and Ireland. United Drug Supply Chain Services is the largest pharmaceutical wholesaler and pre-wholesaler on the island of 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.