United Drug Acquires Leading Clinical Trials Materials Business
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United Drug plc has announced 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 Organizations 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."
