UDG Healthcare shares rise on €94m acquisition

Dublin-based diversified healthcare services group UDG Healthcare has started putting the money it raised from last year’s sale of its legacy Irish businesses to work by acquiring international auditing firm STEM Marketing for a total consideration of £84m (€94.2m).

Although UDG — formerly United Drug — bought leading UK-based pharmaceutical-focused PR firm Pegasus for nearly £17m in May, the STEM deal marks its first major takeover deal since selling its non-core Irish drug distribution business to Lloyds Pharmacy owner McKesson for €407.5m 13 months ago.

STEM is a UK-based business with a presence in the US, China, Japan, and the EU.