8 Discontinued operations and assets of disposal group classified as held for sale

8.1 Discontinued operations

On 2 September 2015, UCB concluded an agreement with Lannett Company, Inc. (“Lannett”) for the sale of its U.S. specialty generics subsidiary, Kremers Urban Pharmaceuticals Inc. (“KU”). The sale was closed on 25 November 2015.

The profit from discontinued operations of € 8 million for 2018 includes a € 9 million profit relating to the sale of KU. Discontinued operations also include additional costs for an environmental provision related to the legacy films and chemical activities for € 1 million. The profit from discontinued operations of € 1 million for 2017 includes a € 1 million loss for costs resulting from the sale of KU as well as a partial reversal of provisions related to the legacy films and chemical activities for € 2 million.

The cash flows from discontinued operations have been separately disclosed on the cash flow statement. In 2018 there was a cash outflow of € 9 million, mainly related to the settlement of a claim relating to activities of KU.

8.2 Assets of disposal group classified as held for sale

Assets of disposal group classified as held for sale as per 31 December 2018 mainly relate to the Monheim site in Germany. In 2016 UCB decided to dispose of the site and enter into a leaseback agreement for that part of the site that is currently used by UCB. The sales contract for the Monheim site was signed in November 2018 and actual transfer of the building took place in February 2019. No impairment loss has been accounted for on these assets.

Assets of disposal group classified as held for sale as per 31 December 2017 also related to the Monheim site.