8th Jan 2008 11:10
Dechra Pharmaceuticals PLC08 January 2008 Issued by Citigate Dewe Rogerson Ltd, Birmingham Tuesday, 8 January 2008 Immediate Release Dechra(R) Pharmaceuticals PLC Shareholders approve £62 million VetXX acquisition and Current Trading and Prospects Dechra Pharmaceuticals PLC ("Dechra" or "Group") announces that, at today's EGM,shareholders approved the proposal to acquire VetXX Holding A/S ("VetXX" or the"Acquisition"), a leading developer, producer and marketer of companion animalveterinary products. The value of the transaction is £61.7 million and will be paid in cash oncompletion. Based in Denmark VetXX employs 165 people and operates in ten European countries(Norway, Denmark, Finland, Sweden, Holland, Spain, Portugal, France, Ireland andthe UK). It also supplies through distributor agreements into other countries,including Japan and Germany. The Acquisition accelerates the Group's objective of delivering medium tolong-term growth, through the development of its own branded veterinarypharmaceutical portfolio of both novel and generic products and the licensing ofthese key products into international markets. The Acquisition is anticipated to be earnings enhancing (before amortisation andexceptional costs) in the first full year and significantly earnings enhancingthereafter. The proxy votes received for the resolutions were as follows: Resolution For Against Discretionary Withheld 1. To approve the proposed 34,874,000 nil 10,759 155,859 acquisition of VetXX 2. To increase the authorised 35,029,859 nil 10,759 nil ordinary share capital of the Company from £750,000 to £1,000,000 3. To authorise the directors 35,022,859 nil 12,759 5,000 of the Company for the purposes of section 80 of the Companies Act 1985 to allot relevant securities 4. To authorise the directors 34,864,620 nil 13,759 162,239 of the Company for the purposes of section 95 of the Companies Act 1985 to allot equity securities as if section 89(1) of the Act did not apply Completion of the Acquisition is expected to take place on 15 January 2007.Application has been made to the London Stock Exchange for admission to tradingof the new ordinary shares which is expected to take place at 8.00 a.m. on 9January 2008. Commenting, Dechra's Chief Executive, Ian Page said: "VetXX is a compelling strategic fit and shares a similar business model andambition with Dechra's pharmaceuticals division. "It provides a strong European footprint, materially increases the Group's rangeof licensed veterinary pharmaceutical products and establishes a European salesand distribution network to market the enlarged product range and futuredeveloped products." Current Trading and ProspectsIn the announcement made on 12 December 2007, the Group provided the followingtrading update. "Since 30 June 2007, Dechra has continued to trade in-line with management'sexpectations with revenue for the four months ended 31 October 2007 in thePharmaceutical and Services divisions 41.7% and 8.4% ahead of the comparableprior year periods, respectively. The Board of Dechra is confident in the futureperformance of the enlarged Group. The strong current trading of both Dechra andVetXX will be further enhanced by the enlarged product range and the widerdistribution infrastructure of the enlarged Group. In addition, the long termprocess of product development and approval will be enhanced by the broaderknowledge base of the enlarged Group." Trading in the last two months of the year ended 31 December 2007 continued tobe in-line with management expectations with overall results for the first sixmonths in terms of revenue being approximately £140.9 million, 11.9% ahead ofthe comparable period last year. The Directors will provide a further update on its progress to shareholders atthe time of the Group's Interim Results for the six months ended 31 December2007, scheduled to be announced on Tuesday, 26 February 2008. Enquiries: Ian Page, Chief Executive Fiona Tooley, DirectorSimon Evans, Group Finance Director Keith Gabriel, Senior Account ManagerDechra Pharmaceuticals PLC Citigate Dewe RogersonTel: +44 (0) 1782 771100 Tel: +44 (0) 121 455 8370 Mobile:+44 (0) 7775 642222 (IP) Mobile: +44 (0)7785 703523 (FMT) www.dechra.com [email protected] Editors Notes: A full copy of the Regulatory News Announcement made on 12 December 2007 can befound at www.dechra.com . Further information on VetXX can also be found on www.vetxx.com. Dechra Pharmaceuticals PLC (LSE Ticker: DPH) Dechra currently operates under two divisions; Pharmaceuticals and Services.Both divisions are focused on the veterinary market with a key area ofspecialisation being on companion animal products. The Group currently employsover 760 people across its 17 locations in the UK and USA. Trade Marks appear throughout this release in italics. Dechra and the Dechra 'D'logo are registered Trade Marks of Dechra Pharmaceuticals PLC. VetXX was incorporated in February 2005 to bring together the companion animalproducts in Leo Pharmaceuticals A/S. The business was acquired by the business'management team backed by Montagu Private Equity. The United Kingdom and France are VetXX's most significant territories, togetherrepresenting approximately 45 per cent. of total revenue in the year ended 31December 2006. In the 11-months to 30 November 2007 total unaudited sales were£31.8 million, 6% ahead of the corresponding period in 2006 at £30.0 million,this revenue growth is principally driven by VetXX's Pharmaceutical division. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
DPH.L