UDG Healthcare spends €95m on acquisitions as underlying revenue grows
Dublin-based UDG Heathcare has spent $106m (€95m) on two acquisitions in its Ashfield communications and advisory business.
This comes as the group’s revenue grew 6pc in the six months to 31 March.
Putnam Associates, a US-based strategic management healthcare consultancy, is being acquired for a total consideration of up to $88.6m (€79m).
Meanwhile Incisive Health, a UK-based healthcare policy and communications consultancy, is being acquired for a total consideration of up to £13.6m (€15.5m).
The group said the acquisitions would further enhance its capabilities in its Ashfield business.
Meanwhile, in the six months to 31 March 2019 the group reported a 6pc growth in net underlying revenue to $656.6m (€588m).
Total net revenue declined 4pc mainly due to the disposal of Aquilant.
Operating profit for the period was $34.1m (€30.5m).
Total adjusted operating profit increased by 1pc (or 3pc on a constant currency basis), reflecting continued growth in Ashfield and Sharp, which was offset by the divestment of Aquilant in August 2018.
UDG Healthcare operates two divisions, Ashfield, which focuses on the provision of communications, advisory and clinical services, and contract pharmaceutical packaging unit Sharp, which has facilities in Europe and the United States.
Ashfield's operating profit increased by 3pc or 6pc on a constant currency basis, driven by the benefit of acquisitions completed in financial year 2018.
Meanwhile, Sharp's operating profit increased by 12pc (12pc on a constant currency basis) in the six month period, driven by the continued strong performance of Sharp US.
CEO, Brendan McAtamney said: "UDG delivered good EPS growth during the first half of FY19. Today, we have also announced the acquisitions of two businesses…Both businesses are aligned with our strategy to expand into higher growth and higher margin areas, complementary to our existing service offering.”
“Reflecting the benefit of these acquisitions and continued trading performance in line with expectations, we have increased our full year guidance to adjusted EPS growth on a constant currency basis to between 5pc and 7pc."