LONDON (Alliance News) - UDG Healthcare PLC said Wednesday it sold its Aquilant division to H2 Equity Partners for EUR23 million.
UDG shares were down 6.4% at 767.50 pence each making the company the second worst performer in the FTSE 250 index.
The healthcare services provider said it will receive EUR20.5 million as an initial cash consideration, while a further EUR2.5 million is deferred and conditional on the division achieving its gross profit targets for the financial years 2018 and 2019.
UDG added that it will recognise an impairment charge of USD10 million on the asset value of Aquilant as at March 31. It will also recognise a USD34 million charge relating to "foreign exchange losses held in equity".
In a separate statement, the company said that for the third quarter to June 30, trading was ahead of the same quarter a year ago, with strong contributions from its units Ashfield Communications & Advisory and Sharp offsetting lower contributions from Ashfield Commercial & Clinical and Aquilant.
For the nine months to June 30, UDG said revenue and pretax profit were "well ahead of the prior year", mainly driven by the benefit of acquisitions completed in 2017.
UDG continues to expect adjusted diluted earnings per share growth between 18% and 21% for 2018, ahead of last year's earnings per share of 37.1 US cents.
The company expects to publish its annual results on November 27.
