Healthcare services group United Drug has bought Pyramed, a UK-based distributor of medical devices and equipment, for as much as £8.5 million (€12.9 million).

Under the terms of the agreement, United Drug will pay an initial consideration of £5 million in cash plus £1 million worth of United Drug shares. A further payment of as much as £2.5 million is dependent on the company achieving certain profit targets over the next two years.

Pyramed, which specialises in the sale and distribution of interventional cardiology and vascular products and related medical devices, works with several international manufacturers in the UK market, making it an attractive target for United Drug.

Prior to yesterday's announcement, the Irish group had made five acquisitions in the region in the past two years, all in areas of medical distribution and contract services.

United Drug chief executive Liam Fitzgerald welcomed the latest acquisition, describing it as a significant development for the company's medical and scientific division in the UK.

"Pyramed is a high-quality service provider in the UK medical market and this business will strengthen our offering in this market, as well as providing us with further opportunities for growth," he said.

"The acquisition is further evidence of our ability to bolt on additional high-value-added business to our existing capabilities in the UK market."

The senior management at Pyramed will remain with the business.