Dechra swoops for Dutch firms in €340m deal
Cheshire-headquartered veterinary pharmaceutical business Dechra is to acquire AST Farma and Le Vet, both based in the Netherlands, for €340m.
The firm, which has its manufacturing base in Skipton, North Yorkshire, and its head office in Northwich, also this morning announced a share placing to raise £100m.
The acquisition will be completed with 75% cash and 25% in new Dechra shares.
AST Farma is one of the leading companion animal pharmaceutical companies in the Netherlands, focused on generic and generic plus products. The business and its reputation have grown strongly through launching generic plus, generic and niche novel products, and by offering added value services to veterinarians.
Le Vet has concentrated on European markets outside of the Netherlands. Working in partnership with AST Farma, Le Vet has developed a strong portfolio of products, and established a network of marketing partners across Europe, including Dechra, to sell them. AST Farma and Le Vet together hold approximately 90 product registrations.
Ian Page, chief executive of Dechra, said: “The acquisition is a rare opportunity to strengthen our EU segment in all the major European countries in which we operate. AST Farma and Le Vet have been a primary target for a number of years so we are delighted to have reached this agreement.”
The share placing with institutional investors includes 5.1m new ordinary shares of 1 pence each in the capital of Dechra, at a price of 2050 pence per placing share – around 5.5% of Dechra’s existing issued share capital.
Investec Bank is acting as sole bookrunner to the company in connection with the placing. The net proceeds of the placing will be used to fund the acquisition in part. The remaining acquisition consideration is being funded through the issue of 3.6m new ordinary shares to the sellers and the drawdown under a new banking facility.
