27th Apr 2007 07:01
Dechra Pharmaceuticals PLC27 April 2007 Issued on behalf of Dechra Pharmaceuticals PLC by Citigate Dewe Rogerson.Date: Friday, 27 April 2007 Embargoed: 7.00am Dechra Pharmaceuticals PLC Dechra expands its veterinary laboratories business through acquisition Dechra Pharmaceuticals PLC ("Dechra" or the "Group") announces today that theGroup has extended its laboratories business through the acquisition of LeedsVeterinary Laboratories Limited ("LVL"). LVL is a well established veterinary laboratory operation founded in 1986. Thebusiness employs 18 staff and 3 consultants and offers a comprehensive range ofveterinary diagnostic tests for companion, exotic, equine and farm animals fromits 6,000 sq.ft facility in Yeadon, Leeds, North Yorkshire. The effective consideration for the LVL acquisition is £750,000 which will besatisfied by £700,000 in cash on completion together with the issue of 14,808new ordinary shares in Dechra at 337.66 pence, being the average price of eachordinary share for the three days prior to completion. For the year ended 31 May 2006, LVL's accounts showed sales of £955,000 and aprofit before taxation of £74,000. Net assets at the same date were £386,000. The net assets at 31 May 2006 included the freehold site from which LVL operateswhich had a book value of £287,000. This property does not form part of thispurchase transaction. A sale and leaseback agreement has been reached betweenthe Group and the principal shareholder which will allow LVL to continue tooperate from its current site in Yeadon. Following the acquisition, all the staff will remain with the business includingco-founders Susan and Andrew Keane who will continue in their current roles.Anne Jones, the principal shareholder who founded the business 21 years ago,will retire from full time executive responsibilities but will remain with thebusiness on a consultancy basis. LVL will operate within Dechra's Services division as part of its existingveterinary laboratories operations of NationWide Laboratories and CambridgeSpecialist Laboratory Services. Application has been made to the UKLA and the London Stock Exchange for the newordinary shares being issued to be admitted to the Official List. It is expectedthat dealings in the new ordinary shares will commence on 2 May 2007. Commenting on the LVL acquisition, Ian Page, Chief Executive, DechraPharmaceuticals said: "LVL is a well-managed operation that has developed a strong reputation forproviding a high standard of service. Strategically, LVL increases our marketshare and skills set within the veterinary laboratories market." Enquiries:Ian Page, Chief Executive Fiona Tooley, DirectorSimon Evans, Group Finance Director Citigate Dewe RogersonDechra Pharmaceuticals PLC Mobile: +44 (0)7785 703523Telephone: +44 (0) 1782 771100 Telephone: +44 (0) 121 455 8370Mobile: +44 (0) 77756 42222 (IP)Mobile: +44 (0) 7775 642220 (SE)www.dechra.com Editors Notes: Leeds Veterinary Laboratories Limited ("LVL")LVL provides a comprehensive range of veterinary laboratory tests across thehaematology, cytology, clinical chemistry, serology, microbiology (pathologicaland food) and histopathology. The business has a wide customer base and is not dependant on any one customer.Currently around 50% of revenues derive from UK veterinary practices with thebalance of revenues coming from its role as a Contract Research Operation forthe international animal pharmaceutical industry and a range of other ad-hocproject related services. The detailed range of tests available to veterinary surgeons and species coveredis on www.lvlabs.co.uk. Dechra Pharmaceuticals PLC ("Dechra")Dechra operates under two divisions; Pharmaceuticals and Services. Bothdivisions are focussed on the veterinary market with a key area ofspecialisation being on companion animal products. The Group employs 700 peopleacross its 16 locations across the UK and USA. www.dechra.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
DPH.L