UDG Healthcare announces the sale of its 50% share of UniDrug to Alliance Boots
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.
- 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 ongoing 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.”