16th Jul 2008 07:00
United Drug acquires US based Sharp Corporation for $99 million
Expands international pharmaceutical contract packaging business
UDG.I UDG.L
Dublin and London, 16 July 2008: 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 Sharp Corporation ("Sharp") for a total consideration of $99 million. The transaction is subject to customary US approvals and is expected to complete within 30 days.
Transaction highlights
The transaction combines the leading independent contract packaging business in the United States with UD's existing European contract packaging operations
Expands and enhances UD's existing outsourced service offering for US pharmaceutical and healthcare companies
Total consideration of $99 million in cash payable on completion
Acquisition will be financed from internal resources and existing debt facilities. At completion of the acquisition the Group Balance Sheet will remain strong with considerable internally generated and external capital resources available
The transaction is expected to be immediately accretive to UD earnings.
Sharp reported revenues of $99 million in 2007 and is expected to have net assets of $71 million on completion
Sharp Corporation
Sharp, headquartered in Allentown, Pennsylvania, is the largest independent pharmaceutical contract packaging company in the growing outsourced market in the United States. The company provides full-service packaging solutions, in compliance with strict regulatory requirements, to large pharmaceutical, generic, biotechnology, speciality pharmaceutical, neutraceutical and consumer healthcare companies. The company employs approximately 600 people, including senior management, all of whom will remain with the business.
United Drug US and Contract Packaging Operations
Sharp will combine with UD's existing US operations to broaden the range of outsourced services for US pharmaceutical and healthcare manufacturers. In contract packaging, which forms part of UD's Supply Chain Services division, UD now combines the leading independent contract packaging business in the United States with UD's existing European operations located in the UK, Belgium and Holland. The Group now has market leading positions in contract packaging in both the US and European markets, with a well defined management structure, and a strengthened international platform from which to continue to develop the business.
Speaking about the acquisition today, United Drug's Chief Executive, Liam FitzGerald said:
"We are delighted to announce the acquisition of Sharp. Sharp is a quality and compliance leader in pharmaceutical contract packaging in the United States and will fit extremely well with our existing packaging operations that provide services to the same client base in most major markets in Europe. The acquisition will also provide a major platform for our on-going development as an international healthcare services company. "
"Sharp is led by a highly experienced management team all of whom will stay with the business. I would like to welcome Sharp CEO, George Burke, his management team and all staff to the United Drug organisation and look forward to working with them to build upon their success to date."
ENDS Wednesday, 16 July 2008
For reference:
Liam FitzGerald Pauline McAlester
United Drug plc Murray Consultants
Tel: +353-1-4598877 Tel: +353-1-4980300
Investors and Analysts
Mark Kenny/Jonathan Neilan
K Capital Source
Tel: +353-1-6315500
About United Drug plc
United Drug is a leading international provider of services to healthcare manufacturers and pharmaceutical retailers, with operations in the UK, Ireland, Holland, Belgium and the USA. The Company has a long-term track record of delivering double-digit profit, earnings and dividend growth. Over the last 20 years pre-tax profits have grown at a compound annual rate of 21%.
The Company operates across four divisions, Pharma Wholesale, Supply Chain Services, Medical & Scientific and Contract Sales & Marketing Services.
United Drug is the largest pharmaceutical wholesaler in the island of Ireland.
It is 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 (UDG). The Company also provides distribution related services in the areas of pharmaceutical contract packaging and speciality distribution in the UK, Holland and Belgium.
Through its Medical & Scientific division, United Drug provides sales &
marketing and technical service solutions, including contract distribution services to Medical & Scientific equipment & consumable manufacturers, with a market leading position in Ireland and an emerging presence in the UK.
United Drug is also a leading provider of contract sales outsourcing and related marketing services to pharmaceutical manufacturers in the UK and Ireland and also provides these services in the US market.
Related Shares:
UDG.L