3rd Aug 2015 06:58
LONDON (Alliance News) - Dechra Pharmaceuticals PLC Monday has agreed to acquire a 63.3% interest in Croatian listed pharmaceuticals business Genera DD in a deal that values Genera at EUR51.4 million.
Dechra is acquired the 63.3% interest from Marijan Han?ekovic at EUR23.66 per share, equivalent to HRK179.60, which it said is a 42.5% premium on the company's closing price of HRK126.00 Friday.
Under Croatian takeover code, Dechra is required to make a mandatory offer for the remaining shares in Genera, and its offer to acquire the 63.3% interest is conditional on shareholder acceptances reaching 75% of the company's issued share capital. The offer to other shareholders will be at the same price per share.
Genera makes animal health products. It posted a pretax profit of EUR400,000 in 2014, on revenue of EUR28.4 million.
Dechra said the acquisition is expected to be neutral to earnings in its first two years, and add to earnings thereafter. The acquisition will expand its food producing animal product portfolio and bring it into the vaccine market.
"We believe this opportunity represents an attractive entry strategy to the poultry vaccine market with the potential to explore vaccines for other species in the longer term. In line with our strategy, this acquisition will accelerate our geographic expansion as well as broaden our food producing Animal Product portfolio. Although the transaction is expected to be earnings neutral in the first two years of ownership, it offers great opportunities for our longer term ambitions," said Chief Executive Ian Page in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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