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Celesio's parent company McKesson has purchased the pharmaceutical distribution division of UDG Healthcare based in Ireland for ‚¬408m.

Under the terms of the agreement McKesson will acquire:

• United Drug and United Drug Sangers wholesale operations across the Republic of Ireland and Northern Ireland
• TCP, a home healthcare provider in the Republic of Ireland
• MASTA, UDG's travel healthcare business based in the United Kingdom.

The transaction is subject to UDG shareholder approval and EU competition clearance, among other customary closing conditions and is expected to close in the first half of calendar year 2016. More than 1,000 UDG employees will join McKesson as part of the acquisition. The acquired operations will be reported as part of McKesson's International Pharmaceutical Distribution and Services business under the leadership of Marc Owen, chairman of the management board at Celesio AG.

Mr Owen said: €The acquisition of UDG's pharmaceutical distribution, home and travel healthcare businesses in Ireland and the UK will strengthen our position in the industry. We have made this investment as part of our growth strategy which leverages the positive trajectory of the wider healthcare sector in Europe. This acquisition will also complement our broader portfolio of assets in both Ireland and the United Kingdom. We look forward to continuing UDG's tradition of excellent customer service and to working with the UDG team.€

Today's announcement follows McKesson's recent agreement to acquire 281 pharmacies operated by Sainsbury's in the United Kingdom. Both the UDG and Sainsbury's acquisitions are expected to close in the first half of calendar year 2016.