Meantime, CEO, Liam FitzGerald has announced his plans to retire in March 2016.
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It has been growing its contract outsourcing and healthcare communications business through acquisitions. He was appointed chief executive at the company in 2000 at the age of just 35.
He’ll be succeeded by Brendan McAtamney, UDG’s chief operating officer, who joined the group in 2013.
McKesson Corporation today announced an agreement to purchase the pharmaceutical distribution division of UDG Healthcare (UDG) based in Northern Ireland (United Drug Sangers) and the Republic of Ireland (United Drug).
James Vane-Tempest, analyst from broker Jefferies, said: “The disposal not only allows the businesses to prosper under the ownership of McKesson but also accelerates UDG’s transformation to a more focused global healthcare services business whilst significantly improving its growth potential and margin profile”.
The FTSE 250-listed company will receive €407.5m in cash for the combined businesses, which generated revenues of €1.4bn and adjusted earnings of €30.3m in the year to September 2014.
Less than a year ago, Mr Ralph said that UDG remained committee to its drug distribution business.
The sale will leave the company “extremely well positioned to develop and strengthen existing market leading positions in Ashfield, Aquilant and Sharp, and to capitalise on the increased demand for their services” UDG said.
“We intend to have a higher dividend in 2016 than in 2015, even though profits will decline following the latest sale”, said Mr Ralph.
The transaction is subject to UDG shareholder approval and European Union competition clearance, among other customary closing conditions and is expected to close in the first half of calendar year 2016.
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The acquired operations will be part of McKesson’s worldwide pharmaceutical distribution and services business.
