Veterinary firm Dechra Pharmaceuticals to buy Dutch businesses
Animal medicine maker Dechra, which has a site in Shropshire, is to buy two European pharmaceutical businesses.
The veterinary firm, which has a key operation at Sansaw Business Park near Shrewsbury, is to buy the Netherlands-based AST Farma and Le Vet for a total of 340 million euros in a cash-and-share deal to boost its presence in Europe.
The two firms have worked together, Dechra said, to develop a strong product portfolio and a network of marketing partners across Europe. Together, they hold around 90 product registrations.
The debt-free, cash-free deal will see Dechra paying about 75 per cent in cash and 25 per cent in new Dechra shares, subject to a two-year lock-in, the firm said in a statement.
AST Farma is an animal pharmaceuticals firm that specialises in generic products, while Le Vet focuses on the European markets outside of the Netherlands.
Dechra plans to raise about £100 million through a placing of 5.1 million new ordinary shares at 2,050 pence each with institutional investors to fund the deal.
The company will also issue 3.67 million new ordinary shares to the sellers.
Dechra, which has been looking to acquire AST Farma and Le Vet for a number of years, said it intended to recommend its shareholders to vote in favor of the deal.
"The acquisition is a rare opportunity to strengthen our EU segment in all the major European countries in which we operate," Dechra chief executive Ian Page said.
"AST Farma and Le Vet have been a primary target for a number of years so we are delighted to have reached this agreement.”
Shares of Dechra were up 3.8 percent at 2,140 pence at 8.45am this morning.
Dechra employs more than 20 people at Sansaw to the north of Shrewsbury, where its regulatory team works on getting new products into the UK market. The Shropshire base for the firm also contains a marketing operation.
