Aug 18 UDG Healthcare Plc said it had
sold its 50 percent stake in a healthcare supply chain joint
venture to partner Alliance Boots Holdings Ltd for 82
million euros ($110 million).
Dublin-based UDG said it expected to use part of the
proceeds of 70 million euros to pay down debt.
The joint venture, UniDrug Distribution Group Ltd, provides
pre-wholesale supply chain services to the healthcare industry
in the UK, including storage, fulfilment and distribution.
The deal provides much-needed liquidity for UDG's
acquisition strategy in its more valuable sales and marketing
and packaging divisions, Jefferies analysts said in a note.
UDG Chief Executive Liam Fitzgerald said the convergence of
the pre-wholesale and wholesale healthcare markets in the UK
meant that the UniDrug business was no longer a good fit with
UDG's core supply chain operations in Ireland and Northern
Shares of UDG, former United Drug, were down 0.6 percent at
342.5 pence in early trading on the London Stock Exchange on
($1 = 0.7469 euros)
(Reporting by Abhiram Nandakumar in Bangalore; Editing by Ted