Veterinary drugs firm Dechra reveals another acquisition
Dechra, which has a site in Shropshire, has announced the acquisition of a fellow animal drugs maker in Brazil and confirmed it was trading in-line with expectations.
The firm, which has a key operation at Sansaw Business Park near Shrewsbury, is paying £37.8 million for Laboratorios Vencofarma do Brasil – A.K.A Venco – which has a large portfolio of vaccines and other livestock products.
A.K.A Venco predominantly sells its 200 plus products within Brazil and other South American countries, and generated revenue of £11.6 million in 2017.
The acquisition provides Dechra with a strategically significant presence within the rapidly growing Brazilian and South American markets.
It will be financed from the group’s existing cash and borrowing facilities.
Completion is expected in November, following the satisfaction of a number of customary conditions precedent.
Dechra’s chief executive, Ian Page, said: “We are delighted to acquire the Venco business, and to be able to establish a footprint in the rapidly-expanding South American markets, with a broad portfolio of animal health products.
“Whilst the Venco business is performing and growing well, like the Brovel acquisition in 2016, we will invest to expand and further upgrade the business over the next two to three years to create increased value to Dechra and its stakeholders.”
Meanwhile, the firm said its performance in the first quarter of its financial year was in line with management’s expectations, with continued year-on-year above market growth in both EU Pharmaceuticals and NA Pharmaceuticals.
It added: “The board is confident in achieving its expectations for the current financial year, and in the continued out-performance of the markets in which it operates. We remain confident that Dechra and its proven strategy is well placed to sustain growth.”
The firm, which has already acquired AST Farma and Le Vet in the Netherlands and RxVet in New Zealand, issued its preliminary results for the year which revealed that it had revenue growth of 13.9 per cent to £407.1 million, while underlying operating profit increased by 24 per cent to £99.2 million.
Earlier this month, on October 8, Dechra revealed it had also acquired New Zealand-headquartered Caledonian Holdings for £4.4 million.
The firm said Caledonian’s range of proprietary equine drugs would enhance its existing portfolio. Caledonian’s revenue in the year to June 30, 2017 was £1.8 million.
Dechra will announce its interim results for the six months to December 31, 2018, on February 25, 2019.
