Uniphar makes three pharma sector acquisitions

(Sharecast News) - Uniphar announced the acquisitions of UK-based brand commercialisation and pharmaceutical marketing agency E4H, UK-based pharmaceutical distributor Devonshire Healthcare Services, and Irish-headquartered pharmacy services group Navi on Thursday, for undisclosed sums.
The AIM-traded firm said E4H offers a range of digital and communications solutions to the pharmaceutical industry, including brand and strategy commercialisation, digital development, omnichannel delivery, engagement and data analysis.

E4H would be integrated into the group's commercial and clinical pharma division, enhancing Uniphar's value proposition of creating a differentiated omni-channel offering for pharmaceutical clients looking to commercialise their brands in Europe.

Devonshire, meanwhile, has provided access to unlicensed and "difficult-to-source" medicines across the Middle East and North Africa region for 25 years, to a variety of healthcare authorities, hospitals, overseas ministries of health and military agencies.

Uniphar said Devonshire would be integrated into the product access division, expanding its global reach into key hospitals in the region for the benefit of both its on-demand and exclusive access businesses.

Devonshire would benefit from Uniphar's existing operational infrastructure, and drive cross-selling opportunities between both businesses.

Finally, the company said Navi operated digital platforms and maintained a consistent supply of quality pharmaceutical products to its Irish and MENA partners.

The firm's "unique technology" and value proposition, combined with Uniphar's scalable distribution facilities and digital platforms, would deliver a stronger offering to Uniphar's independent community pharmacy customer base.

It said that acquisition remained subject to approval by the Irish Competition and Consumer Protection Commission, and was expected to complete in the second quarter of 2022.

Each acquisition included an upfront payment, plus contingent consideration payable on achievement of certain financial hurdles.

The company said the were each expected to deliver a return on capital employed to the group in line with Uniphar's target rate of 12% to 15% within three years.

It said the combined revenue of the acquisitions was €39m, with the total increase in the number of colleagues joining Uniphar being 110, and expected annualised earnings accretion in the mid-single digits.

Planning for the integration of the acquisitions was already underway, with Uniphar's management and project teams set to ensure integration was "managed effectively" to deliver the identified benefits.

"We are delighted to announce three acquisitions today, one across each of Uniphar's divisions which accelerates our strategic objectives and demonstrates our continued focus on identifying and executing compelling merger and acquisition opportunities that meet or exceed our strict returns criteria," said chief executive officer Ger Rabbette.

"E4H's digital capabilities and innovative services advance our commercial model to become a market leading omni-channel solution for our pharma partners.

"Devonshire's strong track record in servicing the MENA region unlocks new opportunities for our Product Access division and demonstrates our commitment to becoming a global leader in the provision of unlicensed and difficult to source medicines."

"Navi's highly sophisticated digital offering will be leveraged throughout the supply chain and retail division and demonstrates our commitment to delivering a differentiated and market-leading service offering."

At 1002 GMT, shares in Uniphar were up 3.14% at 394p.