Aug 18 (Reuters) - UDG Healthcare Plc said it hadsold its 50 percent stake in a healthcare supply chain jointventure to partner Alliance Boots Holdings Ltd for 82million euros ($110 million).
Dublin-based UDG said it expected to use part of theproceeds of 70 million euros to pay down debt.
The joint venture, UniDrug Distribution Group Ltd, providespre-wholesale supply chain services to the healthcare industryin the UK, including storage, fulfilment and distribution.
The deal provides much-needed liquidity for UDG'sacquisition strategy in its more valuable sales and marketingand packaging divisions, Jefferies analysts said in a note.
UDG Chief Executive Liam Fitzgerald said the convergence ofthe pre-wholesale and wholesale healthcare markets in the UKmeant that the UniDrug business was no longer a good fit withUDG's core supply chain operations in Ireland and NorthernIreland.
Shares of UDG, former United Drug, were down 0.6 percent at342.5 pence in early trading on the London Stock Exchange onMonday.
($1 = 0.7469 euros) (Reporting by Abhiram Nandakumar in Bangalore; Editing by TedKerr)
