Dechra pays out nearly £10m as US acquisition shows strong growth

STAFFORDSHIRE-based pharmaceutical group Dechra has paid out almost £10m to the vendors of a US business acquired by the group two years ago.

DermaPet, a Florida-based operation selling dermatological products to the US pet market, was acquired by Dechra in a £41m deal in October 2010.

The Staffordshire group said the £9.4m ($15m) payment had been made pursuant to the terms of the DermaPet Purchase Acquisition Agreement which said further payouts would be made to the vendors subject to performance results.

“The payment was triggered by the rolling 12 monthly revenue from the sale of DermaPet products exceeding $15m in October 2012.   The achievement of this target, ahead of company expectations, demonstrates the success of the acquisition,” said Dechra in a statement.

The payment was made in cash from existing facilities.

Dechra said that in line with the acquisition agreement a further payment of £3.1m ($5m) would become due if, at any time in the next four years, DermaPet’s rolling 12 monthly revenue exceeds £12.5m ($20m).

In a trading statement in July, published ahead of its full year results, Dechra said its US pharmaceuticals division was ahead by 25% on the previous year, supported by the growth of its Vetoryl and Felimazole drugs and the DermaPet product range.

DermaPet’s products include a range of dermatological preparations such as shampoos, conditioners and ear products.