Dechra overcomes major hurdle to US acquisition
INTERNATIONAL veterinary products company Dechra Pharmaceuticals has overcome a major hurdle in its plans to acquire a firm in the United States.
The listed Northwich, Cheshire company announced last month that it was prepared to pay £139m for pet remedy developer Putney, which is based in Portland, Maine.
Clearance for the deal to proceed has now come from the Department of Justice and the US Federal Trade Commission.
In a brief statement to the London Stock Market, Dechra said: “The mandatory waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, has now expired.
“The expiration of the waiting period satisfies the primary condition to the closing of the proposed acquisition, which is now expected to complete by April 21.”
Dechra is planning to part-fund the acquisition by raising £48.4m through the placing of 4.4m ordinary shares at 1100 pence per share.
The company, which has a large base in Shrewsbury, says the acquisition accelerates its North American strategy, potentially doubling its US business and adds critical mass to the company in the world’s largest pet market.
It also provides access to a high quality product range and complementary therapeutic focus areas and strengthens the group’s pipeline for the US as well as building on Putney’s regulatory expertise and commercial team.
