United Drug seeks shareholder approval for name change
United Drug chairman Peter Gray: “The new name is a better descriptor of our worldwide business.”
United Drug is calling on shareholders to approve the renaming of the healthcare services company ahead of an EGM in Dublin this Friday. The company recently announced plans to change its name to UDG Healthcare, with the new trading name acting as an umbrella for the group’s growing number of subsidiaries.
In a letter to shareholders, company chairman Peter Gray said: “The company has made a number of acquisitions, strengthening and broadening the organisation’s international success … for this reason the board is recommending that shareholders vote to change the name of the company … the new name is a better descriptor of our worldwide business.”
Mr Gray said the United Drug brand would continue to be used in the Irish wholesale and distribution business.
The company last week announced the acquisition of Expansis, a contract sales provider in Spain, for €12 million.
Goodbody senior equity analyst Dónal O’Neill said the acquisition, which is expected to be complete in September, should be complimentary to United Drug’s Pharmexx business in Spain and will create the market leader with sales in excess of €30 million.
“This looks to be a sensible acquisition for United Drug, helping it to boost its margins and market share in Spain.”
The company will report its third-quarter interim results this Wednesday.