UDG Healthcare announces sale of Aquilant division for €23m
Dublin-based UDG Heathcare has sold its Aquilant division for a potential consideration of up to €23m.
The division was sold to H2 Equity Partners, a European private equity firm.
Aquilant is a distributor of specialist medical, pharmaceutical and scientific products and services, including outsourced sales, marketing, distribution and engineering services to clients in Ireland, the UK and the Netherlands.
It represented approximately 4pc of Healthcare's operating profits in the six-months to 31 March 2018.
Following the disposal of the group's United Drug supply chain businesses to McKesson in 2016, UDG has now exited all of its lower margin distribution businesses, the healthcare services provider said in a statement today.
Proceeds from the sale of Aquilant will be used to fund the continued development of the HDG's higher growth and higher margin divisions, Ashfield and Sharp.
Under the terms of the transaction, the total proceeds receivable by the group will be up to €23m.
This comprises an initial cash consideration payment of €20.5m and deferred consideration of up to a further €2.5m, payable in cash, based on the achievement of gross profit targets by Aquilant in financial years 2018 2019.
"The sale of Aquilant is consistent with the group's strategy to focus on its higher growth, higher margin international healthcare services businesses," Brendan McAtamney, CEO of UDG Healthcare, said.
Separately, UDG also announced its results for the three months to 30 June.
UDG said that its performance during the quarter was ahead of the same quarter last year.
The group said that strong contributions from acquisitions, as well as good underlying growth from Ashfield Communications & Advisory and Sharp, more than offset a lower contribution from Ashfield Commercial & Clinical and Aquilant.
Looking forward, UDG said that its balance sheet remains strong leaving it with "significant capacity" to execute further strategic acquisitions to complement its existing growth platforms.
The group said that it reiterates its full year guidance for constant currency adjusted diluted earnings per share (EPS) growth for the year to 30 September 2018 to be between 18pc and 21pc ahead of last year's EPS of $37.1cent.