United Drug has announced its third acquisition in six months, buying the British business and assets of US-based Ventiv Health for $7.5 million (€7.7 million) in cash. The acquisition has been made by United Drug's contract sales outsourcing division, Ashfield Healthcare Limited.
"The acquisition of Ventiv Health's UK contract sales business will allow Ashfield broaden its product offering to customers and consolidate its position as a leading service provider to the pharmaceutical industry," said United Drug chief executive Mr Liam FitzGerald.
Analysts said the Ventiv business accounted for 10 per cent of the British sales outsourcing market and, when combined with Ashfield, it should raise United Drug's market share to 40 per cent. The deal is also expected to provide Ashfield with access to some additional top-tier clients such as GSK, 3M and Wyeth.
Company broker Davy said the deal would add about 1 per cent to its existing September 2003 pre-tax profit and earnings per share forecasts. "The deal deepens the Ashfield client base at a time when the enlarged business can be easily accommodated in its new facility in Ashby," Davy analyst Mr Jack Gorman said.
United Drug has been busy on the acquisitions front of late. In April, it acquired privately owned British medical devices supplier New Splint for €11.4 million.
Last month, it bought IntraVeno Healthcare, an Irish medical devices company employing around 70 people, for €19.5 million.
The company has said it is also on the look-out for acquisitions in continental Europe and is particularly interested in developed healthcare markets such as Germany, France and Scandinavia.
Ventiv, which is listed on the Nasdaq and based in New Jersey, said it was pleased to have sold the British business because it allowed it to focus its resources on its US-based businesses, which it believes offer greater potential for growth.
