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Veterinary products firm Dechra Pharmaceuticals PLC on Wednesday said it is planning a fundraise for an acquisition, as it progresses talks for another potential buy.
FTSE-100 listed Dechra said it has agreed to acquire Piedmont Animal Health Inc for $210 million, or £175 million, in cash.
Greensboro, North Carolina-based Piedmont makes products for the companion animal market, which will add to Dechra's portfolio of innovative and novel solutions for vets and pet owners.
To fund the acquisition, Dechra plans to raise £180 million via the issue of 5.2 million shares at 3,430 pence each.
The shares represent around 4.8% of its existing share capital, with the placing price being an 8% discount to the closing share price on Wednesday in London of 3,730.00 pence.
Dechra also said it plans to undertake PrimaryBid offer at the same price.
The capital fundraise will give its balance sheet the flexibility to execute on its acquisition pipeline ‘including on one near term opportunity which the company is in exclusive discussions to acquire with an acquisition price similar to Piedmont,’ Dechra says.
If completed, the acquisition of Piedmont and the potential other acquisition will become accretive to earnings per share from financial 2025, and ‘materially accretive thereafter’, the firm said.
The pharmaceutical company also said there has been no change to its outlook since its update in early July, where it reported strong trading that remains in line with expectations.
Investec Bank PLC will serve as financial adviser, sole broker and bookrunner for the placing.
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