Dechra Pharmaceuticals, which makes medicines for pets and livestock, today spent €135 million (£111.9 million) buying a smaller Dutch rival that makes drugs for cattle, horses, dogs, pigs, cats and chickens.
Shares in Dechra jumped nearly 9%. It will pay for Eurovet Animal Health via a £60 million discounted rights issue, which is on a basis of three new shares for every 10 existing ones, and a new debt facility. Dechra hopes to gain from Eurovet’s reach in Europe. Eurovet has sales and marketing operations in the UK, Netherlands, Germany, Belgium, and Denmark, and supplies vets in over 40 countries. Last year, its products, which include antibiotics, vitamins, and anaesthetics for livestock and pets, brought in sales of €76.8 million.
Ian Page, chief executive Dechra, said: “This is a great opportunity to build on the strong foundation we have created.”
Shares in Dechra increased by 39p to 503p.
