Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Dechra To Buy Dutch Veterinary Firm Eurovet, Plans Rights Issue; Shares Up

Shares of Dechra Pharmaceuticals Plc (DPH.L) grew around 9 percent in the morning trade on London Stock Exchange after the British veterinary pharmaceuticals firm announced its agreement to buy Dutch veterinary company firm Eurovet Animal Health B.V. aiming to strengthen its European presence. The company also announced a fully underwritten 3 for 10 rights issue to fund the deal.

The company plans to buy Eurovet, the pharmaceutical business of A.U.V. Holding B.V., for a total cash consideration of 135 million euros or about 112.5 million pounds on a debt-free, cash-free basis.

Dechra expects that the acquisition would help it to accelerate its strategic objectives. The deal is expected to be earnings enhancing in the first full year of ownership and materially earnings enhancing thereafter after synergies but excluding one-off costs of integration.

According to the company, the combination has compelling strategic and synergistic benefits including revenue synergies and margin uplift through marketing of Dechra's products via Eurovet's direct sales force in Germany, among other things.

Eurovet, a Continental European veterinary pharmaceuticals business, operates in both the companion animal pharmaceuticals and farm animal pharmaceuticals markets. For the year ended December 31, 2011, Eurovet's sales were 76.8 million euros and EBITDA was 12.8 million euros.

The Netherlands-based Eurovet has highly complementary products, geographies, manufacturing competencies and is similar in structure to Dechra Veterinary Products, the company noted.

Commenting on the acquisition, Dechra's Group Chief Executive, Ian Page said, "This is a great opportunity to build on the strong foundation we have created for our pharmaceuticals business, Dechra Veterinary Products. By bringing Eurovet to the Group we will strengthen our European presence; will increase our product portfolio; improve our manufacturing capabilities and strengthen our management team. Furthermore, the acquisition accelerates our strategic objectives."

Dechra will fund the acquisition with the proceeds of the rights issue to raise approximately 60 million pounds as well as debt pursuant to the terms of a new debt facility. The issue will be made on the basis of 3 new ordinary shares for every existing 10 ordinary shares at a price of 300 pence, representing a discount of 29.6 percent.

Dechra shares are currently trading at 503.79 pence, up 39.79 pence or 8.57 percent.

Register
To receive FREE breaking news email alerts for Dechra Pharm PLC and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Stocks moved notably higher over the course of the trading day on Friday after initially showing a lack of direction. The gains on the day extended the recent upward trend by the markets, with the tech-heavy Nasdaq reaching its best closing level in almost a month. Looking to capitalize on news of an Ebola diagnosis in New York City, Republican Senate candidate Scott Brown issued a statement Friday criticizing his Democratic opponent Sen. Jeanne Shaheen, D-N.H., for "waffling" on a travel ban. In another troubling sign for Democrats, the results of a Gallup poll released on Friday show that Tea Party Republicans are much more motivated to vote in the upcoming midterm elections than other Americans. The poll found that 73 percent of Tea Party Republicans are "extremely" or "very" motivated to vote in this year's elections.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.