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Dechra Pharmaceuticals PLC on Tuesday said it has bought California-based veterinary pharmaceutical manufacturer Med-Pharmex Inc for $260.0 million.
The FTSE-100 veterinary products firm said the total consideration, which is the equivalent of £221.5 million, was paid on a debt-free and cash-free basis.
‘The US market is highly consolidated, therefore this is a unique opportunity to add several new products to our portfolio, enter the US FAP market and improve the manufacturing footprint for our North American business,’ said Dechra Chief Executive Ian Page.
Dechra said the acquisition will offer further product scale to its operations in the animal health market in the US. It said Med-Pharmex has been a ‘long-term acquisition target’.
Med-Pharmex, founded in 1983, has expertise in topical, oral and certain injectable products. For 2021, it generated revenue of $43.0 million and adjusted earnings before interest, tax, depreciation and amortisation of $15.3 million.
Dechra said it expects the acquisition to be ‘immediately accretive to underlying earnings per share’.
Shares were up 1.3% at 3,486.00 pence each on Tuesday morning in London.
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