Our client operates two significant healthcare businesses – pharmaceutical distribution and Retail Pharmacy. In 2016, they agreed to purchase two business units from the United Drug Group;

• UDG – wholesaling business in the Republic of Ireland and Northern Ireland (UK)
• MASTA – travel vaccine clinics

Synergies from this acquisition would be made through a full integration of UDG within AAH Pharmaceuticals and MASTA within Lloyds Pharmacy.

The metrics for success were;

1. Business Continuity
2. Incremental EBITDA

UDG operated in both the Republic of Ireland and Northern Ireland.

In Northern Ireland, the heritage brand was UDG Sangers which was the dominant player in the market and AAH number two. There is significant loyalty to both companies for a variety of historical reasons which created the first of three significant challenges – Branding.

The second challenge was the introduction of a fourth major competitor, Alliance Healthcare, which created Excess Capacity in the market of both assets (depots) and transport (vehicles, drivers).

The third challenge was Access to DTP Products – those medicines with a distribution contract with restricted access because Sangers was sub-contracted previously by Alliance Healthcare.

MASTA operated a business model which provided patients with access to travel vaccines and treatments. This involved own clinics, franchise clinics via retail pharmacy, an online access to vaccines, advice and booking services.

Whilst there were some initial synergies, the initial challenge was to ensure business as usual for a newly appointed General Manager.

Several aspects of the services we provided added value quickly to the acquisition and integration

• Previous and relevant healthcare experience
• Programme Management
• Commercial Coaching
• Building Business Capabilities
• Stakeholder Management – within the acquired businesses and the wider Programme structure

Our approach of Assess, Recommend, and Implement provided the Programme Team with the necessary confidence to activate the integration plan.

What did we deliver?

There was complete business continuity for UDG Sangers and AAH Belfast following the clearance by the Competition Authorities with a senior management retention plan in place;

1. A full integration plan was designed, networked, presented, and approved by the Programme Board
2. Full agreement to the re-branding exercise
3. Consolidation of combined capacity with a schedule for activation
4. Agreement from Rx companies to provide access to DTP Products
5. Identified and phased incremental EBITDA for UDG & AAH

Full business continuity and integration into Celesio UK of MASTA as a stand-alone business unit.

Complete alignment against the original acquisition business case.