Nenelite Limited (Bidco) agrees to acquire UDG Healthcare in a £2.611 deal

Nenelite Limited (Bidco) agrees to acquire UDG Healthcare in a £2.611 deal 1

LONDON: Nenelite Limited (Bidco), an Affiliate of Clayton, Dubilier & Rice LLC (CD&R), will acquire the entire issued and to be issued share capital of UDG Healthcare.

The acquisition values the entire issued and to be issued share capital of UDG Healthcare at approximately £2.611 billion and implies an enterprise value of £2.777 billion.

Bidco is a private company limited by shares incorporated in Ireland and established for the sole purpose of implementing the acquisition and is an Affiliate of CD&R. As at the date of this announcement, the entire issued share capital of Bidco is indirectly owned by CD&R.

Commenting on the acquisition, Shane Cooke, UDG Chairman said: “UDG has transformed since disposing of its supply chain business in 2015, through a combination of sustained long term organic growth and strategic bolt on acquisitions, adding additional capabilities and expanding the UDG Group’s geographic footprint into a leading healthcare services provider.

While the UDG Board remains confident in the long term fundamentals of the Group, we believe that this is an attractive offer for UDG Shareholders, which secures the delivery of future value for Shareholders in cash today. The offer reflects the quality, strength and long term performance of UDG’s businesses and its future growth potential. We believe that our people, our clients and our businesses will continue to prosper under the stewardship of CD&R.”

Commenting on the Acquisition, Eric Rouzier, CD&R partner said: “UDG has long established itself as a leading provider of high-value services to Pharma and Biotech companies globally, supported by a highly skilled workforce. CD&R has a strong record in partnering with management teams and we look forward to working with the UDG team to build on their success and help accelerate UDG’s growth and the development of its services offering to clients.”

Background to and reasons for the Acquisition

  • UDG has strong market positions in the pharma services space. Both Ashfield and Sharp operate in large and growing markets, underpinned by continued growth in new drug development and approvals, increasing therapeutic and drug complexity and continued outsourcing from Pharma and Biotech clients.
  • CD&R has a long track record of investing in healthcare businesses and partnering with                management teams to develop and grow their global operations. In 2020, CD&R purchased Huntsworth and supported its subsequent acquisition of Nucleus Global, establishing a global player in the field of Medical Communications, Market Access and Healthcare Marketing.
  • Ashfield and Huntsworth are highly complementary businesses which Bidco intends to combine to create a unique set of global solutions to support Pharma and Biotech clients across the life cycle of a drug, from development to launch and beyond patent expiry, across all therapeutic areas.
  • Sharp is a high-quality provider of manufacturing, packaging, clinical and technology services to pharmaceutical companies, with a differentiated set of capabilities in the biologics space. Bidco will invest in the business to support its growth prospects and service innovation.
  • Bidco believes that as a private company, and with its support, UDG will have the opportunity to   best develop its service offering to clients globally, pursue accretive strategic acquisitions, and     offer its employees continuous development opportunities.

UDG Healthcare plc, formerly United Drug, is a Dublin-based international company and partner to the healthcare industry, providing clinical, commercial, communication and packaging services. It is listed on the London Stock Exchange. It is a constituent of the FTSE 250 Index.

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