Down Mexico Way for Dechra as it strengthens global presence
PHARMACEUTICAL group Dechra has strengthened its global presence with an acquisition in Mexico.
Dechra, which has a large operation in Shrewsbury, has acquired 100% of the share capital of Laboratorios Brovel, a veterinary pharmaceuticals company based in Mexico City.
The group will pay $5m in cash on completion of the deal and a further $1m is contingent upon Brovel successfully reaching registration milestones for Dechra’s products in Mexico.
Brovel is a family-owned business with more than 52 years’ experience in the production and distribution of pharmaceutical veterinary products. It has a diverse product portfolio with a turnover of MxP$ 66.2m (£2.6m).
The Dechra board said it believed the acquisition would help open the significant Mexican animal health market to the group as well as the potential to access other Latin American markets in the future.
The initial focus will be to achieve registration of several existing Dechra products in this market.
The acquisition was announced in a trading update that showed business in the first half was strong with group revenue growth, including at Genera (the Croatian listed pharmaceutical business it acquired in a £36m deal last autumn).
Ian Page, Dechra CEO, said: “This is an exciting time for Dechra as we continue to grow organically, launch new products and move into new territories through acquisitions. As a result of our focus on and execution of our strategy, we are delivering a strong first half performance. With Group trading in line with management expectations for the 2016 financial year, we remain confident in our future prospects.”
