Dechra Pharmaceuticals PLC Dechra acquire Laboratorios Vencofarma do Brasil (5786E)
October 19 2018 - 2:01AM
UK Regulatory
TIDMDPH
RNS Number : 5786E
Dechra Pharmaceuticals PLC
19 October 2018
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED
UNDER THE MARKET ABUSE REGULATION (EU) NO.596/2014.
Friday, 19 October 2018
Dechra(R) Pharmaceuticals PLC
(Dechra, Group, Company)
Acquisition
Dechra secures access to rapidly growing South American
markets
The Board of Dechra announces the acquisition of the entire
share capital of Laboratorios Vencofarma do Brasil Ltda (Venco,
acquisition), a company based in Londrina, Brazil for a total
consideration of R$185m (GBP37.8m)(1) on a cash free / debt free
basis. Revenue in the year to 31 December 2017 was R$65.0 million
(GBP11.6 million)(1) . The acquisition will be financed from the
Group's existing cash and borrowing facilities. Completion is
expected in November following the satisfaction of a number of
customary conditions precedent.
Venco has a large portfolio of Vaccines and other Food producing
Animal Products (FAP) which it sells predominantly within Brazil,
and also in other South American and international markets. It also
has a small range of Companion Animal Products (CAP) vaccines and
pharmaceuticals, which are sold mainly on the Brazilian market.
Overall it has over 200 current product registrations. Brazil is
the fourth biggest FAP market in the world, and Vaccines is the
fastest growing therapeutic area within FAP globally.
The acquisition provides Dechra with a strategically significant
presence within the rapidly growing Brazilian and South American
markets. The Londrina site, in the state of Parana, houses all the
Venco business functions, including product development,
manufacturing operations, sales and marketing and regulatory
affairs. The site has enjoyed a period of recent significant
investment in manufacturing operations, which has materially
upgraded the facilities which have achieved regulatory licenses to
operate.
Dechra will invest significantly over the next 2 to 3 years to
develop the business and its presence in South America, will
continue to develop the existing Venco pipeline and registrations,
register relevant Dechra products and establish the Dechra brand in
the region.
Venco will be managed by Dechra's International business, and
reported within EU Pharmaceuticals. The majority of the existing
management team will remain with the business and will continue the
day to day management of the business. A project management team
comprising local contract employees and existing Dechra staff will
support the integration work streams over the coming months as
Dechra standards are applied throughout the company.
Ian Page, Dechra's Chief Executive Officer commented, "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. Whilst
the Venco business is performing and growing well, like the Brovel
acquisition in 2016, we will invest to expand and further upgrade
the business over the next 2 to 3 years to create increased value
to Dechra and its stakeholders."
Separately, Dechra issues a trading update this morning ahead of
its Annual General Meeting later today. To read, please follow the
link
http://www.rns-pdf.londonstockexchange.com/rns/5786E_1-2018-10-19.pdf
Enquiries:
Dechra Pharmaceuticals PLC
Ian Page, Chief Executive Officer Office: +44 (0) 1606 814
730
Richard Cotton, Chief Financial Officer Office: +44 (0) 1606 814
e-mail: corporate.enquiries@dechra.com 730
TooleyStreet Communications Ltd
Fiona Tooley, Director Mobile: +44 (0) 7785 703
e-mail: fiona@tooleystreet.com 523
Office: +44 (0) 121 309
0099
Note
1) Translated at R$4.8997: GBP 1.0000 (closing rate on 17 October 2018)
About Dechra
Dechra is an international specialist veterinary pharmaceuticals
and related products business. Our expertise is in the development,
manufacture and sales and marketing of high quality products
exclusively for veterinarians worldwide. Dechra's business is
unique as the majority of its products are used to treat medical
conditions for which there is no other effective solution or have a
clinical or dosing advantage over competitor products.
For more information, please visit: www.dechra.com
Stock Code: Full Listing (Pharmaceuticals): DPH
LEI: 213800J4UVB5OWG8VX82
Trademarks
Dechra and the Dechra "D" logo are registered trademarks of
Dechra Pharmaceuticals PLC.
Forward Looking Statement
This document may contain certain forward-looking statements.
The forward-looking statements reflect the knowledge and
information available to the Company during the preparation and up
to the publication of this document. By their very nature, these
statements depend upon circumstances and relate to events that may
occur in the future thereby involve a degree of uncertainty.
Therefore, nothing in this document should be construed as a profit
forecast by the Company.
Market Abuse Regulation (MAR)
The information contained within this announcement may contain
inside information stipulated under the Market Abuse Regulation
(EU) No. 596/2014. Upon the publication of this announcement via
the Regulatory Information Service, this inside information is now
considered to be in the public domain.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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