Clayton, Dubilier & Rice Agrees to Buy UDG for $3.7 Billion

(Bloomberg) -- UDG Healthcare Plc agreed to be acquired by buyout firm Clayton, Dubilier & Rice in a cash deal valuing the pharmaceutical services company at 2.61 billion pounds ($3.7 billion).

Under the terms of the transaction, each UDG shareholder will receive 1,023 pence per share, a premium of about 22% to the closing price on May 11, the company said in a statement Wednesday.

UDG shares rose above the offer price to as high as 1,037 pence in London, a record.

The Dublin-based company provides services to pharmaceutical customers, from sales teams to health care communications and event management, in about 25 countries. UDG reported on Wednesday adjusted operating profit growth of 11% in fiscal first half.

UDG has “strong prospects, and exposure to good industry fundamentals,” RBC analyst Charles Weston wrote in a note to clients. The bid was recommended by the board “and we think it will be accepted by shareholders,” he said.

UDG was advised by Goldman Sachs International and Rothschild & Co on the deal.

“While the UDG Board remains confident in the long term fundamentals of the group, we believe that this is an attractive offer for UDG shareholders,” said UDG Chairman Shane Cooke in the statement.

©2021 Bloomberg L.P.