TIDMUDG
RNS Number : 1231X
UDG Healthcare Public Limited Co.
08 August 2018
UDG Healthcare announces the sale of Aquilant division
8 August 2018: UDG Healthcare plc ("the Group"), a leading
international healthcare services provider, announces the sale of
its Aquilant division to H2 Equity Partners, a European private
equity firm, for a total potential net consideration of up to EUR23
million (approximately $27 million).
Aquilant is a leading distributor of specialist medical,
pharmaceutical and scientific products and services, including
outsourced sales, marketing, distribution and engineering services
to clients in the Republic of Ireland, the UK and the Netherlands.
Aquilant represented approximately 4% of UDG Healthcare's operating
profits in the six-month period ended 31 March 2018.
Following the disposal of the Group's United Drug Supply Chain
businesses to McKesson in April 2016, the Group has now exited all
of its lower margin distribution businesses. In line with the
Group's strategy, proceeds from the transaction will be used to
fund the continued development of the Group'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 EUR23 million. This comprises
an initial cash consideration payment of EUR20.5 million and
deferred consideration of up to a further EUR2.5 million, payable
in cash, based on the achievement of gross profit targets by
Aquilant in FY18 and FY19.
The Group will recognise an impairment charge of approximately
$10 million on the asset value of Aquilant as at 31 March 2018. The
Group will also recognise a charge of approximately $34 million
relating to the recognition of accumulated foreign exchange losses
held in equity*.
For the year ended 30th September 2017, Aquilant generated net
revenue of $96.3 million and operating profit of $6.4 million and
had gross assets of $126.5 million.
Commenting on the announcement, Brendan McAtamney, CEO of UDG
Healthcare plc, said: "We are pleased to announce the sale of
Aquilant to H2 Equity Partners. This transaction will provide new
opportunities for Aquilant employees and I'd like to extend my
thanks to all employees of Aquilant for their ongoing commitment to
the business and, on behalf of the Board, I wish them every success
in the future.
The sale of Aquilant is consistent with the Group's strategy to
focus on its higher growth, higher margin international healthcare
services businesses."
*These exchange differences arose from the translation of the
net assets of the Aquilant business, denominated in Euro and
Sterling, to US dollars in each reporting period. As these exchange
differences were previously recognised in the Group's other
comprehensive income and the foreign exchange reserve, this charge
has a nil impact on shareholder's equity and the Group's adjusted
diluted EPS.
For reference:
Investors and Analysts:
Keith Byrne
Head of Investor Relations, Strategy & Corporate
Communications
UDG Healthcare plc
Tel: + 353-1-468-9000
Media:
Lisa Kavanagh / Jack Hickey
Powerscourt
Tel: +44-207-250-1446
Notes to Editors
About UDG Healthcare plc:
UDG Healthcare plc (LON: UDG) is a leading international partner
of choice delivering advisory, communication, commercial, clinical
and packaging services to the healthcare industry, employing over
8,500 people with operations in 25 countries and delivering
services in over 50 countries.
UDG Healthcare plc operates across two divisions: Ashfield and
Sharp.
Ashfield is a global leader in advisory, communication,
commercial and clinical services for the pharmaceutical and
healthcare industries.
It focuses on supporting healthcare professionals and patients
at all stages of the product life cycle. The division provides
field and contact centre sales teams, healthcare communications,
patient support, audit, advisory, medical information and event
management services to over 300 healthcare companies.
Sharp is a global leader in contract commercial packaging and
clinical trial packaging services for the pharmaceutical and
healthcare industries, operating from state-of-the-art facilities
in the US and Europe.
The company is listed on the London Stock Exchange and is a
constituent of the FTSE 250.
For more information, please go to: www.udghealthcare.com
About H2 Equity Partners
H2 Equity Partners, founded in 1991, is a leading Western
European hands-on investment firm focusing on the United Kingdom,
Ireland and the Benelux. H2 Equity Partners is an entrepreneurial
and hands-on investment company investing in mid-sized companies
with significant growth or improvement potential.
For more information, please go to: www.h2ep.co.uk
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END
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