United Drug acquires leading clinical trials materials business
20 August 2012:
United Drug plc, a leading international provider of healthcare services announces that it has reached agreement to acquire the UK and US clinical services businesses (combined "Bilcare Global Clinical Supplies" or "Bilcare GCS") from Bilcare Limited for a total consideration of $61 million. The acquisition is expected to complete on 31 August 2012 subject to the fulfilment of usual closing conditions. As part of this agreement, Bilcare Limited will retain its clinical supplies business in Asia.
Transaction highlights:
• Bilcare Global Clinical Supplies is a leading clinical trials materials business providing services to global pharmaceutical and biotech manufacturers and Clinical Research Organisations from facilities in the US and UK. The services include the formulation, development, packaging, labelling and supply chain management of drugs used in the clinical trials process.
• It is estimated that the gross assets of the combined business are $16 million and the profits applicable to those assets in the last financial year were $4.6 million. The net assets on completion are expected to be $9.5 million.
• The Bilcare GCS business is complementary to United Drug's existing commercial packaging business and will form a part of its Packaging & Specialty division. Following completion of the acquisition, United Drug will be a global leader in both commercial and clinical packaging.
• United Drug and Bilcare Asia will combine their capabilities and work together in instances where there are customers requiring clinical trials materials services across the US, UK and Asia.
• The consideration is payable in cash on completion and will be financed from United Drug's internal resources and existing debt facilities.
Bilcare GCS
The acquired business forms part of the Global Clinical Supplies division of Bilcare Limited. With facilities in Phoenixville, Pennsylvania, USA and Crickhowell, Wales the acquired business employs 195 people.
Commenting on the announcement, Liam FitzGerald, Chief Executive of United Drug said: "The Bilcare acquisition is another very important step in the development of United Drug as we focus on margin expanding, international opportunities. This business fits well alongside our existing packaging businesses in the US and Europe and will position us as a leading provider of services in the growing clinical trials materials market. Along with the recent Watermeadow and Pharmexx acquisitions, this transaction extends United Drug's position and reputation as an international provider of outsourced services to life sciences companies with an unrivalled service offering."
For reference:
Liam FitzGerald Barry Mc Grane United Drug plc
Tel: +353-1-4632300
About United Drug plc
Pauline McAlester Irish media
Murray Consultants Tel: +353-1-4980300
Greg Lawless/Lisa Kavanagh UK media
Powerscourt Tel: +44 207 250 1446
Listed on the Stock Exchanges in London and Dublin, United Drug is a leading international provider of services to healthcare manufacturers and pharmaceutical retailers, with operations in over 20 countries including: the UK, Ireland, Germany, the Netherlands, Belgium, and the USA.
The Company operates across three divisions, Healthcare Supply Chain, Sales, Marketing & Medical, and Packaging & Specialty.
In Healthcare Supply Chain, United Drug is the largest pharmaceutical wholesaler in the island of Ireland. It is also the market leader in contract distribution outsourcing (pre- wholesaling) in Ireland and has achieved the No. 1 position in the UK through its joint venture business UniDrug Distribution Group (UDG). The Company provides specials medicines manufacturing and distribution services in the UK. Through its medical & scientific operations, United Drug provides sales & marketing and technical service solutions,
including contract distribution services to a wide range of medical & scientific equipment & consumable manufacturers, with a market leading position in Ireland and an emerging presence in the UK.
In the Sales, Marketing & Medical division United Drug is a global leader in the provision of contract sales outsourcing services to pharmaceutical manufacturers with operations in major markets including Continental Europe, the UK, North America and a presence in South America. United Drug also provides related marketing services to pharmaceutical manufacturers in each of these markets.
In the Packaging & Specialty division United Drug is a leading international provider of pharmaceutical contract packaging services with facilities in the US, UK, Dutch and Belgian markets. The Company also provides speciality distribution and homecare services in the UK and Ireland.
For more information go to www.united-drug.com.
About Bilcare
Bilcare Limited (www.bilcare.com) (BSE code 526853), listed on the Bombay Stock Exchange, is a unique organisation with a strong research foundation and an unending quest for global leadership. Bilcare offers customer-centric innovation for pharmaceutical packaging, card solutions, speciality film solutions and clinical trials supplies management. Through nonClonableIDTM technology, Bilcare offers path breaking business solutions in brand protection and business intelligence. Bilcare operates best in class manufacturing and research facilities in Germany, India, Italy, Singapore, UK and USA.