United Drug acquires Expansis in Spain

UNITED DRUG PLC

United Drug acquires Spanish contract sales organisation

1August 2013: United Drug plc ("Group"), a leading international provider of healthcare services, announces that it has reached an agreement to acquire Expansis, a Spanish contract sales organisation, for a total consideration of up to €12m. The deal is expected to complete in September, subject to clearance by the Spanish competition authorities.

Transaction highlights

·; Expansis is a leading contract sales business headquartered in Madrid, which provides outsourced services to a wide range of pharmaceutical companies in Spain. The business was established in 1995 and currently employs 280 people.

·; Expansis is complementary to the Pharmexx Spain business unit, which the Group acquired as part of its acquisition in 2012 of Pharmexx (the global Contract Sales Organisation). It is intended to merge the two businesses, subject to approval from the Spanish competition authorities; however, until this concludes the two businesses will operate independently. Expansis will become part of the Sales, Marketing and Medical division of United Drug (which is known as the Ashfield division).

·; 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: 

"Expansis has an impressive track record, is well established in the Spanish market and will further strengthen United Drug's presence in this important market. With our combined resources and expertise, we look forward to building a market leading contract sales business in Spain."

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 Expansis

Expansis is a leading contract sales business based in Madrid and Barcelona, which provides outsourced services to a wide range of pharmaceutical companies in Spain. The family-owned business was founded by José Luis Casteig in 1995, after a career at Sanofi. The company currently employs 280 people, which consists of field based sales representatives, call centre operatives and head office staff.

Expansis has helped pioneer the Spanish contract sales market and works with many of the leading multinational pharmaceutical companies. The business has also been expanded into the area of patient support solutions, where it is targeting significant growth.