REG - Uniphar PLC - Acquisition of BModesto Group

UnipharAnnouncement

21/11/2022 07:00

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RNS Number : 9776G  Uniphar PLC  21 November 2022

This announcement contains inside information

Uniphar plc today announces the acquisition of BModesto Group

 

Dublin, London | 21 November 2022: Uniphar plc (the "Group") today announces
the acquisition of BModesto Group ("BModesto").

BModesto is a Netherlands headquartered healthcare services business focused
on improving access to pharmaceutical and healthcare products across the
Netherlands, Germany, the UK and Europe.

BModesto offers a wide range of services including the distribution of
medicines on both an exclusive and on-demand basis, clinical trial services,
market authorisation holder and medical device distribution.

These services are targeted at a growing customer base comprising of
pharmacies, hospitals, wholesalers and pharmaceutical companies. Delivery of
these products and services is supported by a well-invested logistics
infrastructure, including a modern distribution centre outside Amsterdam, that
enables the processing of high volumes of product and efficient distribution
across Europe. The BModesto team of over 180 people has, since its foundation
in 2014, built up a strong international sourcing network to gain access to
these much needed and often difficult to source medicines.

The acquisition will be integrated into Uniphar's Product Access division and
will support the delivery of existing services into the strategically
important European market. The BModesto platform, which Uniphar will continue
to invest in, further accelerates our strategy of becoming a global leader in
providing access to ethically sourced unlicensed and difficult to source
medicines and the delivery of 'Expanded Access Programs' on a global basis.

BModesto generated EBITDA of €7.7m in 2021 and the acquisition is expected
to deliver a Return on Capital Employed in line with Uniphar's target rate of
12%-15% within three years.

The purchase price includes an upfront payment of €51m, which will be funded
from existing banking facilities, plus a deferred consideration payment of up
to €24m contingent upon the achievement of EBITDA and Gross Profit based
performance targets. The BModesto team recognises the enhanced opportunity to
continue to grow the business as part of the Group and remains fully engaged
as a core part of the global business going forward.

Commenting on today's announcement

Ger Rabbette, CEO of Uniphar said:

"BModesto is a significant addition to the Group, strengthening our Product
Access offering in Europe and beyond. The acquisition is another step in
achieving our strategy of becoming a global leader in the ethical provision of
access to medicines which remain unlicensed at the point of care. It also
provides a further boost to our capabilities in the provision of Expanded
Access Programs for innovative new medicines. The company's strategic
location, sophisticated sourcing, regulatory capabilities and broad access to
key end markets strengthens our evolving global service offering and will
allow us to make a positive difference in the lives of more patients. We are
delighted to welcome the highly talented BModesto team to the Group."

Michael Hendriks, CEO of BModesto said:

"BModesto, like Uniphar, is a fast-growing ambitious organisation focused on
delivering vital medicines and healthcare services to those who need it most.
We share common goals which means we have an excellent cultural and strategic
fit. Together, we believe we can become a global leader across our area of
expertise and make a meaningful impact to patients' lives."

Navi Group acquisition

The acquisition of the Navi Group, as previously disclosed, is subject to
approval by the Competition and Consumer Protection Commission (CCPC) and a
decision is expected next month.

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 ("EU MAR") and for the purposes of
Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK
domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR"),
and is disclosed in accordance with the company's obligations under Article 17
of EU MAR and Article 17 of UK MAR. The date and time of this announcement is
the same date and time that it has been communicated to the media.

The person responsible for arranging the release of this announcement on
behalf of Uniphar plc is Aisling McCarthy.

 

For further details contact:

 Uniphar                                                                      +353 (0) 1 428 7777

 Allan Smylie
 Head of Strategy and IR                                                      investor.relations@Uniphar.ie (mailto:investor.relations@Uniphar.ie)

 Davy (Joint Corporate Broker, Nominated Adviser and Euronext Growth Listing  +353 (0) 1 679 6363
 Sponsor)
 Barry Murphy
 Niall Gilchrist
 Lauren O'Sullivan

 RBC Capital Markets (Joint Corporate Broker)                                 +44 (0) 20 7653 4000

 Jonathan Hardy
 Jamil Miah

 Stifel Nicolaus Europe Limited (Joint Corporate Broker)                      +44 (0) 20 7710 7600
 Matt Blawat
 Ben Maddison
 Francis North

 Q4 PR                                                                        +353 (0) 1 475 1444 or
 (Public Relations Adviser to Uniphar)                                        +353 87 235 6461

 Iarla Mongey

 

 

About Uniphar plc

 

Headquartered in Dublin, Ireland, the Uniphar Group 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. The Group is active in Ireland, the UK, Europe, the US and
Australia.

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 outsourced sales, marketing
& distribution solutions to multinational pharmaceutical and medical
device manufacturers. Active in Ireland, the UK, Benelux, the Nordics, Germany
and the US, the Group is growing with its clients to provide pan-European
solutions, with a targeted service offering in the US. Uniphar has built fully
integrated digitally enabled customer centric solutions that are 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", 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 c. 53% market share in
the wholesale/hospital market, supported by a network of 381 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
also utilised for the benefit of the Commercial & Clinical and Product
Access divisions

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