Dublin - UDG Healthcare said it had sold its 50% stake in a healthcare supply chain joint venture to partner Alliance Boots for €82m.
Dublin-based UDG said it expected to use part of the proceeds of €70m to pay down debt.
The joint venture, UniDrug Distribution Group, provides pre-wholesale supply chain services to the healthcare industry in the UK, including storage, fulfilment and distribution.
The deal provides much-needed liquidity for UDG's acquisition strategy in its more valuable sales and marketing and packaging divisions, Jefferies analysts said in a note.
UDG Chief Executive Liam Fitzgerald said the convergence of the pre-wholesale and wholesale healthcare markets in the UK meant that the UniDrug business was no longer a good fit with UDG's core supply chain operations in Ireland and Northern Ireland.
Shares of UDG, former United Drug, were down 0.6% at 342.5 pence in early trading on the London Stock Exchange on Monday.