PHARMACY supplies company Uniphar has acquired Germany-headquartered Correct Medical in a deal that is understood to be worth in the region of €25m overall.
Correct Medical specialises in the commercialisation and distribution of cardiology medical devices in Germany and Switzerland.
The purchase price includes an upfront payment plus a contingent fee payable upon achievement of earnings based performance targets.
The acquisition is forecast to deliver a return on capital employed in line with Uniphar’s target rate of 12pc-15pc within three years, according to a statement from the group.
The purchase represents a “key strategic milestone” for Uniphar, as it continues to build out its pan-European offering, the company said.
Ger Rabbette, CEO of Uniphar said: “The acquisition of Correct Medical accelerates our entry into Germany, the largest MedTech market in Europe, and underpins our focus on developing a truly pan-European offering for our partners.”
“Correct Medical’s strong relationships with German and Swiss physicians and hospitals, combined with Uniphar’s expertise and deep manufacturer relationships, will provide a unique offering for MedTech customers seeking to commercialise across Europe,” he added.
Germany accounts for about a quarter of the European medical technology sales, according to Uniphar.
Correct Medical is focused on some of the fastest growing areas of interventional cardiology, it said.
The Correct Medical team, including managing director Michael Braun, will remain with the company.
“Uniphar continues to execute on its European growth ambitions in Commercial & Clinical (C&C),” Davy analysts Allan Smylie and Shane Reilly said in a note.
“Uniphar C&C now has sales and distribution capability in the UK, Ireland, Benelux, Nordics, Germany and Switzerland, with more countries likely to follow over the medium term. In doing so, Uniphar is building a unique platform and competitive position,” they added.
Uniphar was founded by a small group of Irish community pharmacists in 1967. It now has more than 3,200 employees.
The company has a presence in Ireland, the UK, the Benelux, the Nordics, Germany and the United States.
In 2019, it listed on Euronext Dublin and the AIM, a submarket of the London Stock Exchange.
This is Uniphar’s first acquisition this year. The company completed a total of four acquisitions in 2020, three of which increased its presence in the US. In Ireland it purchased the 36 strong Hickeys pharmacy chain.
Last year the company reported gross profit of €217m, an improvement of 21pc year on year on a constant currency basis.
Shares in Uniphar were up 0.6pc in early afternoon trading in Dublin.
