United Drug has raised $102 million (€83.12 million) in a private placement with a group of UK and US insurance companies. The cash will be used to refinance existing bank borrowings and general corporate purposes, according to the company.

The company has issued unsecured notes with repayment dates of 2011, 2014 and 2016.

"This issue has improved our capital structure with the lengthening of our debt maturity profile and introduced a new group of investors and source of funding to United Drug," said Mr Barry McGrane, the finance director of United Drug, in a statement.

The company's net current debt stands at €66 million, representing gearing of 35 per cent, according to Merrion Stockbrokers.

"The placement gives the group additional fire-power to execute further bolt-on acquisitions," said Mr Peter Frawley, Merrion equities analyst.

Davy Stockbrokers, which is broker to United, also believes that the placement enhances the company's war chest. It predicts that United Drug will continue to expand its medical and scientific division in the UK and Ireland.

e supply sector in the UK," said Mr Ian Hunter of Goodbody Stockbrokers said: "We believe that this placement is not only to refinance existing bank borrowings as indicated, but also signals the potential for further acquisitions, possibly in the medical device supply sector in the UK."

United Drug shares closed up 4 cents at €3 last night.