Healthcare services provider UDG Healthcare has sold its Aquilant division – a distributor of medical, pharmaceutical and scientific products – to European private equity firm H2 Equity Partners for a potential sum of up to €23m (£20m).

Aquilant provides services, including outsourced sales, marketing and distribution services, to clients in the UK, Republic of Ireland and the Netherlands.

The division represented roughly 4% of UDG Healthcare’s operating profits in the six-month period ended 31 March 2018.

For the year ended 30 September 2017, Aquilant generated net revenue of $96.3m (£74.8m).

In line with its strategy, UDG said proceeds from the deal will fund the development of its higher growth and higher margin divisions, Ashfield and Sharp.

Brendan McAtamney, UDG chief executive, said: ‘This transaction will provide new opportunities for Aquilant employees and I’d like to extend my thanks to all employees of Aquilant for their ongoing commitment to the business.’

H2 Equity Partners was established in 1991 with an investment focus on mid-sized companies in the UK, Ireland and Benelux.