UDG Healthcare sells stake in UniDrug to Alliance Boots for €82m
Published 18/08/2014 | 07:25
UDG Healthcare has sold its 50pc stake in distribution firm UniDrug to Alliance Boots for €82m.
According to the company, UDG Healthcare received a net after tax profit contribution from UniDrug of €5.6m in fiscal 2013.
The proceeds will be used for general corporate purposes and debt pay down, it added.
UniDrug is a distributor in the UK offering specialist storage services, for example. Following the disposal, United Drug Supply Chain Services will remain an Alloga partner (pre-wholesaling) in Ireland and will continue to work with Alliance Boots on this basis and will retain other distribution relationships with the firm both in the Republic and Northern Ireland.
Liam FitzGerald, Chief Executive of UDG Healthcare 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."