United Drug buys parts of Canadian firm for €11m
Published 31/08/2013 | 05:00
United Drug has agreed to pay €11m to buy specific operations from a Canadian healthcare services firm, in the latest of a string of bolt-on acquisitions it has made over the past year.
The Irish group said it was paying C$15.5m to buy the multi-channel marketing, call centre and sample management business of Medical Communications.
United Drug said it has acquired the business to build out its commercial proposition in Canada. It comes on the heels of the acquisition of Pharmexx Canada as part of United Drug's acquisition last year of Pharmexx.
United Drug paid €35m last year for outsourcer Pharmexx, buying it from Celesio.
The newly acquired Canadian business will become part of the sales, marketing and medical division of United Drug and existing management will remain. United Drug is financing the deal from its own internal resources and existing debt facilities and expects it to be earnings accretive in year one.
Liam FitzGerald, the chief executive of United Drug, said the Canadian business is "highly innovative" and will complement the capabilities of Pharmexx in the country. "With combined resources and expertise, we look forward to building a market-leading service offering in Canada," he added.
The deal is expected to close within the next six weeks.
Last month, United Drug agreed to pay €12m to buy Expansis, a Madrid-based contract sales firm. That acquisition is due to close this month subject to clearance by the Spanish competition authorities.
The Irish group says it eventually intends to merge Expansis with the Spanish Pharmexx business.