DAVY VIEW

Swiss-based Galenica has core activities in wholesale and retail distribution, similar to Uniphar’s Supply Chain & Retail (SC&R) division. We see several parallels between the two businesses and a future pathway for Uniphar that could lead to increased margins and profitability. Galenica is valued at 13x 2021 EV/EBITDA, which can be partly explained by its market-leading positions and profit growth. As Uniphar continues to leverage its wholesale platform to execute its retail strategy and drive profits higher, we think investors should start to re-rate Uniphar’s SC&R division over time.