Ashfield In2Focus

Acquisition of Sharp in the USA

United Drug acquires US based Sharp Corporation for $99 million
Expands international pharmaceutical contract packaging business
Dublin and London, 15 July 2008: United Drug plc (“UD” or the “Group”), a leading international provider of services to healthcare manufacturers and pharmaceutical retailers today announced that it has acquired the entire issued share capital of Sharp Corporation (“Sharp”) for a total consideration of $99
million. The transaction is subject to customary US approvals and is expected to complete within 30 days.

Transaction highlights
• The transaction combines the leading independent contract packaging
business in the United States with UD’s existing European contract
packaging operations
• Expands and enhances UD’s existing outsourced service offering for US
pharmaceutical and healthcare companies
• Total consideration of $99 million in cash payable on completion
• Acquisition will be financed from internal resources and existing debt
facilities. At completion of the acquisition the Group Balance Sheet will
remain strong with considerable internally generated and external capital
resources available
• The transaction is expected to be immediately accretive to UD earnings.
• Sharp reported revenues of $99 million in 2007 and is expected to have
net assets of $71 million on completion
Sharp Corporation
Sharp, headquartered in Allentown, Pennsylvania, is the largest independent
pharmaceutical contract packaging company in the growing outsourced market
in the United States. The company provides full-service packaging solutions, in
compliance with strict regulatory requirements, to large pharmaceutical,
generic, biotechnology, speciality pharmaceutical, neutraceutical and consumer
healthcare companies. The company employs approximately 600 people,
including senior management, all of whom will remain with the business.
United Drug US and Contract Packaging Operations
Sharp will combine with UD’s existing US operations to broaden the range of
outsourced services for US pharmaceutical and healthcare manufacturers. In
contract packaging, which forms part of UD’s Supply Chain Services division,
UD now combines the leading independent contract packaging business in the
United States with UD’s existing European operations located in the UK,
Belgium and Holland. The Group now has market leading positions in contract
packaging in both the US and European markets, with a well defined
management structure, and a strengthened international platform from which to
continue to develop the business.
Speaking about the acquisition today, United Drug’s Chief Executive, Liam
FitzGerald said:
“We are delighted to announce the acquisition of Sharp. Sharp is a quality and
compliance leader in pharmaceutical contract packaging in the United States
and will fit extremely well with our existing packaging operations that provide
services to the same client base in most major markets in Europe. The
acquisition will also provide a major platform for our on-going development as
an international healthcare services company. ”
“Sharp is led by a highly experienced management team all of whom will stay
with the business. I would like to welcome Sharp CEO, George Burke, his
management team and all staff to the United Drug organisation and look
forward to working with them to build upon their success to date.”