Acquisitive pharmaceutical company completes £37.8m deal
Veterinary pharmaceutical business Dechra has completed its acquisition of South American-based Laboratorios Vencofarma do Brasil – trading as Venco – for £37.8m.
The firm, which has its manufacturing base in Skipton, North Yorkshire, and its head office in Northwich, Cheshire, said this morning that further to its announcement in October, its latest acquisition had completed.
Ian Page, Dechra’s Chief Executive Officer said: “We are delighted to complete on the Venco acquisition, enabling Dechra to establish a key new footprint in the rapidly expanding South American markets. We are pleased to welcome the Venco team to Dechra, to begin the integration process and our additional investment in this rapidly growing market.”
Venco has a large portfolio of Vaccines and other Food producing Animal Products (FAP) which it sells predominantly within Brazil, with a small but increasing presence in other South American and international markets. It also has a small range of Companion Animal Products (CAP) vaccines and pharmaceuticals, which are sold mainly on the Brazilian market. Overall it has over 200 current product registrations. Brazil is the fourth biggest FAP market in the world, and Vaccines is the fastest growing therapeutic area within FAP globally.
The acquisition provides Dechra with a strategically significant presence within the rapidly growing Brazilian and South American markets. Dechra said it would invest significantly over the next 2 to 3 years to develop the business and its presence in South America, will continue to develop the existing Venco pipeline and registrations, register relevant Dechra products and establish the Dechra brand in the region.
Venco’s revenue in the year to 31 December 2017 was £11.6m and the acquisition will be financed from Dechra’s existing cash and borrowing facilities. The Londrina site, in the state of Parana, houses all the Venco business functions, including product development, manufacturing operations, sales and marketing and regulatory affairs. The site has enjoyed a period of recent significant investment in manufacturing operations, which has materially upgraded the facilities which have achieved regulatory licenses to operate.
It it the latest deal for Dechra this year. In October it acquired New Zealand-headquartered Caledonian Holdings for £4.4m. In January it acquired AST Farma and Le Vet, both based in the Netherlands, for €340m.
