19th Oct 2018 08:28
LONDON (Alliance News) - Dechra Pharmaceuticals PLC said Friday it is confident in achieving its expectations for the current financial year, as it entered the South American market by acquiring Laboratorios Vencofarma do Brasil Ltda.
Dechra shares were trading up 2.8% at 2,220.00 pence each, the third best performer in the FTSE 250 index.
In an annual general meeting statement, Dechra said its trading in the first quarter was in line with management views with both units EU Pharmaceuticals and NA Pharmaceuticals recording "above market growth".
The company said it is confident in the "continued out-performance" of the markets where it operates.
In a separate announcement, Dechra said it bought Brazilian-based Laboratorios Vencofarma for GBP37.8 million.
Venco, which owns a portfolio of vaccines and food producing animal products, recorded GBP11.6 million in revenue for 2017.
The firm, based in Londrina, Brazil, also owns a small range of companion animal products vaccines and pharmaceuticals.
Dechra Chief Executive Officer Ian Page said: "We are delighted to acquire the Venco business, and to be able to establish a footprint in the rapidly expanding South American markets, with a broad portfolio of animal health products."
The acquisition will be financed from Dechra's existing cash and borrowing facilities and will be completed in November.
"The acquisition provides Dechra with a strategically significant presence within the rapidly growing Brazilian and South American markets," the company, which is ready to "invest significantly" over the next couple years to develop business and presence in South America, explained.
Dechra will announce its interim results for the six months to December on February 25.
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