The deal – which is expected to close in September – will see Madrid-based Expansis and its 280-strong workforce merge with United Drug’s existing Spanish contract sales unit, Pharmexx. However, until the takeover is approved by Spanish authorities the two firms will continue to operate independently.
CEO Liam FitzGerald said: “Expansis has an impressive track record, is well established in the Spanish market and will further strengthen United Drug’s presence in this important market.
“With our combined resources and expertise, we look forward to building a market leading contract sales business in Spain.”
United's reign in Spain
United Drug acquired the Spanish operations of Germany-based contract sales firm Pharmexx in July last year. And, so far, that move seems to have paid off.
In May, United Drug attributed much of the revenue growth achieved by its sales, marketing and medical division during the six months to March 31 – up 113% to €182m – to the contribution from Pharmexx, citing the firm’s low margins as important.
At the time United Drug said that: “There is considerable potential to strengthen the Pharmexx business in the main markets in which we operate,” citing Spain along with Germany, Austria and Canada among those markets.
Rebranding following geographic expansion
In other news, United Drug has announced plans to change its name to UDG Healthcare plc, citing its geographic expansion efforts as a key driver.
In a letter issued ahead of an EGM that will be held in August 9, company chairman Peter Gray told shareholders “the Company’s strategy over recent years has focused on providing international outsourced solutions to healthcare companies.
“As part of this strategy the Company has made a number of successful acquisitions, strengthening and broadening the organisation’s international services.
“For this reason the Board is recommending that shareholders vote to change the name of the Company from "United Drug plc" to "UDG Healthcare plc". This new name is a better descriptor of our worldwide business. The “United Drug” brand will continue to be used in our Irish wholesale and distribution business.”