North West vet supplies firm moves into Brazil with £37.8m deal

Ian Page, chief executive, Dechra Pharmaceuticals

Cheshire firm Dechra has expanded into Latin America with a £37.8m deal for a Brazilian company.

Dechra, which makes veterinary products, has completed the acquisition of Laboratorios Vencofarma do Brasil, a company based in Londrina on a cash free / debt free basis.

Revenue in the year to 31 December 2017 was £11.6 million.

The acquisition will be financed from the Northwich group’s existing cash and borrowing facilities.

Venco has a large portfolio of vaccines and other food producing animal products which it sells predominantly within Brazil, and also in other South American and international markets.

It also has a small range of companion animal products vaccines and pharmaceuticals, which are sold mainly on the Brazilian market. Overall it has over 200 current product registrations.

The acquisition provides Dechra with a strategically significant presence within the rapidly growing Brazilian and South American markets.

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.

Dechra will invest significantly over the next two to three 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 will be managed by Dechra’s International business, and reported within EU Pharmaceuticals.

The majority of the existing management team will remain with the business and will continue the day to day management of the business.

A project management team comprising local contract employees and existing Dechra staff will support the integration work streams over the coming months as Dechra standards are applied throughout the company.

Ian Page, Dechra’s chief executive, 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.

“We are pleased to welcome the Venco team to Dechra, to begin the integration process and our additional investment in this rapidly growing market.”

Dechra will announce a Trading Update covering the six month period to 31 December 2018 on Monday 14 January 2019.

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