Healthcare services provider UDG Healthcare has sold its 50 per cent stake in UniDrug Distribution Group to its joint venture partner Alliance Boots for € 82 million.UDG said that the proceeds will be used for general corporate purposes and debt pay down.
London-listed 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.
Liam FitzGerald, chief executive of UDG Healthcare, said that 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 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,” he said.
Founded in 1996, 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 and will continue to work with Alliance Boots on this basis. UDG will also continue its long term relationship for wholesale service provision to Alliance Boots in both Northern Ireland and the Republic.
