Irish medicines supplier United Drug has bought Sharp Corporation for $99 million (€62.18 million) as part of its expansion into the US.
The purchase will be "immediately accretive" to earnings, United Drug said in a statement. It added that Sharps' workforce of 600, including senior management would remain with the company.
Sharp packages drugs for US pharmaceutical companies and had revenues of $99 million in 2007, United Drug said.
Liam FitzGerald, United Drug chief executive, said: "Sharp is a quality and compliance leader in pharmaceutical contract packaging in the United States and will fit extremely well with our existing packaging operations that provide services to the same client base in most major markets in Europe.
He said the acquisition would provide a platform for United Drug's development as an international healthcare services company.
Sharp will combine with United Drug's existing US operations to broaden the range of outsourced services for US pharmaceutical and healthcare manufacturers, Mr FitzGerald added.
Noting that the deal is United Drug's largest, Davy analyst Jack Gorman said in a investors note that "to the extent that the Sharp deal contributes meaningfully to earnings and is in a targeted area of growth for UDG, it should be well received United Drug".
United Drug shares were over 3 per cent higher at €3.60 in the first 30 minutes of trade. At this share price the company has a market cap of €832 million. Its shares are down 8.7 per cent this year, outperforming the overall Iseq which is 35 per cent lower over the same period.