Last checked at 23 Dec 2021 07:00
Uniphar plc today announce the acquisitions of E4H, Devonshire Healthcare Services and Navi Group
Dublin, London | 23 December 2021: Uniphar plc (the "Group") today announces the acquisitions of UK-based brand commercialisation and pharmaceutical marketing agency, E4H, UK-based pharmaceutical distributor Devonshire Healthcare Services ("Devonshire") and Irish-headquartered pharmacy services group, Navi Group ("Navi").
E4H offers a wide range of digital and communications solutions to the pharmaceutical industry, including brand and strategy commercialisation, digital development, omnichannel delivery, engagement and data analysis. E4H will be integrated into the Group's Commercial & Clinical Pharma division, enhancing Uniphar's value proposition of creating a truly differentiated omni-channel offering for pharmaceutical clients looking to commercialise their brands across Europe.
Devonshire has provided access to unlicensed and difficult to source medicines across the Middle East and North Africa ("MENA") region for 25 years to a broad variety of healthcare authorities, hospitals, overseas ministries of health and military agencies. Devonshire will be integrated into the Product Access division, expanding its global access into key hospitals in the MENA region for the benefit of both its On Demand and Exclusive Access businesses. Devonshire will benefit from Uniphar's existing operational infrastructure and drive cross-selling opportunities between both businesses.
Navi drives innovation within the Irish pharmacy sector through leading digital platforms and consistent supply of quality pharmaceutical products to its Irish and MENA partners. The unique technology and value proposition of Navi combined with Uniphar's scalable high-tech distribution facilities and digital platforms will deliver an even stronger offering to our Independent Community Pharmacy customer base. This acquisition is subject to approval by the Irish Competition and Consumer Protection Commission and is anticipated to complete in Q2 2022.
Each acquisition includes an upfront payment plus contingent consideration payable upon achievement of certain financial hurdles and each are expected to deliver a Return on Capital Employed to the Group in line with Uniphar's target rate of 12%-15% within three years.
The combined revenue of the acquisitions is €39m with the total increase in the number of colleagues joining Uniphar being 110 and expected annualised earnings accretion of mid-single digit.
Planning for the integration of these acquisitions is already underway and Uniphar's experienced management and project teams will ensure integration is managed effectively to deliver the identified benefits.
Commenting on today's announcement
Ger Rabbette, CEO of Uniphar said:
"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 M&A opportunities that meet or exceed our strict returns criteria.
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 & Retail division and demonstrates our commitment to delivering a differentiated and market-leading service offering"
Karl Hamer, CEO of E4H said:
"We, at E4H, are excited to be joining Uniphar. Our service offering is a unique fit for the Group, and we are looking forward to delivering a stronger value proposition and service through our combined offering to our clients with the ultimate benefit to patients. E4H is built around its people, as such we believe Uniphar is a great cultural match."
Tim Smith, founder of Devonshire Healthcare Services said:
"In joining the Uniphar Group, Devonshire is well placed to continue to serve and support its strong customer base across MENA, Europe and Asia while also benefiting from mutual cross-selling opportunities."
John Carroll, CEO of Navi said
"Navi and Uniphar have been partners for many years and share a common goal - to provide best in class services to community pharmacy, driven by innovative digital solutions. We are looking forward to working together to drive innovation across the sector."
For further details contact:
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About Uniphar plc
Headquartered in Dublin, Ireland, Uniphar is an international diversified healthcare services business servicing the requirements of more than 200 multinational pharmaceutical and medical technology manufacturers across three divisions - Commercial & Clinical, Product Access and Supply Chain & Retail. With a workforce of more than 3,000, the Group is active in Ireland, the UK, the Benelux, the Nordics, Germany and the US.
The Company's vision is to improve patient access to pharmaco-medical products and treatments by enhancing connectivity between manufacturers and healthcare stakeholders. Uniphar represents a strong combination of scale, growth and profitability.
Commercial & Clinical
In Commercial & Clinical the Group provides sales, marketing & distribution solutions to multinational pharmaceutical and medical device manufacturers on an outsourced basis. Active in Ireland, the UK, Benelux, the Nordics, Germany and the US, the Group is growing with its clients to provide pan-European solutions. Uniphar has built a fully integrated multi-channel solution that is supported by our highly experienced and clinically trained teams leveraging our digital technology and insights which allows us to deliver consistently exceptional outcomes for our clients.
Product Access
In Product Access the Group is growing two distinct service offerings: 1) "On Demand Access", which are pharmacy led solutions for sourcing and supplying unlicensed medicines to meet the needs of both retail and hospital pharmacists; and 2) "Exclusive Access", which are manufacturer led solutions for controlling the release of speciality medicines for specifically approved patient populations in agreed markets. The Group currently delivers product access solutions on a global basis.
Supply Chain & Retail
Uniphar is an established market leader in Ireland with over a 50% market share in the wholesale/hospital market, supported by a network of c.360 owned, franchised and symbol group pharmacies. The business supports the diverse customer base through the provision of strong service levels coupled with innovative commercial initiatives. Supply Chain & Retail is an Irish only business for the Group, although the manufacturer relationships and infrastructure are utilised for the benefit of the growth divisions, Commercial & Clinical and Product Access.