United Drug plc Announces Acquisition of IntraVeno Healthcare and IntraPharma
United Drug plc (‘United Drug''), the leading healthcare services provider, today (Tuesday 3rd September 2002), announces that it has acquired the entire issued share capital of Oremelt Company, trading as IntraVeno Healthcare and IntraPharma.
IntraVeno/IntraPharma was established over 20 years ago by Michael Kinsella, and specialises in the distribution of critical care, surgical, medical and pharmaceutical products to the healthcare sector. The Company is accredited with the ISO 9002 quality standard by the National Standards Authority of Ireland.
The consideration for the acquisition, paid on completion, is €13.3 million and is satisfied by €9.975 million in cash or interest bearing loan notes and the issue of 248,134 United Drug plc shares, with a value of €3.325 million. The total consideration payable can increase to €19.5 million on achievement of profit targets up to 31 December 2003. 75% of the additional consideration will be satisfied by cash or interest bearing loan notes, with the remaining 25% through the issue of shares in United Drug plc. The Company''s last audited financial statements are for the year to 31 December 2001 and show net assets of €4.69 million at that date, and profits before tax for the year of €1.86 million. The founder and senior management team of the Company will be remaining with the business and have each entered into 3-year service contracts with the Company.
Earlier this year, United Drug acquired New Splint Limited, one of the U.K.''s quality distributors of orthopaedic implants and surgical instruments. This acquisition of IntraVeno, together with New Splint and United Drug''s Unitech and UAL/Vector Scientific, each leading suppliers in the scientific sector in the Republic of Ireland and Northern Ireland, strengthens United Drug''s presence in the rapidly growing Medical & Scientific sector.
IntraVeno's emphasis on quality and the delivery of an added-value service offering in the key healthcare sector complements that of United Drug. Both companies share a core objective of maintaining their reputation in terms of the supply of quality products and exceeding customer needs, guided by a comprehensive management system.
Commenting on the acquisition of IntraVeno, Liam FitzGerald, Chief Executive of United Drug, said: "The acquisition of IntraVeno is further evidence of our strategy of expanding our presence in medical and scientific distribution as a key element of the growth and development of our Contract Distribution Outsourcing Division."
"The coming together of IntraVeno and United Drug to develop an enhanced Medical & Scientific Division, will allow us to offer a more focussed and added-value service to our Principals and to our customers in the medical, scientific and industrial sectors on the Island of Ireland and in the U.K. The knowledge, experience and enthusiasm of the new combined management structure will facilitate the ongoing development of these exciting businesses."