In times of economic uncertainties, the Swedish investment company EQT has agreed on a deal to take over Dechra Pharmaceuticals, a manufacturer for vet drugs, for £4.46 billion ($5.58B/€5.19B). The agreement represents the greatest acquisition this year in Britain.
According to chair Elizabeth Alison Platt, the overture was “a compelling opportunity for shareholders to realize, in cash and with certainty, Dechra’s potential for future value creation.”
The investment firm is now able to gain foothold the pet industry. Probably, the deal will be closed at the end of 2023 or at the beginning of 2024 since the competition though hinges on the permission of a shareholder. The share price of Dechra has already increased by 33% after the deal was announced.
In May, Dechra has already released a warning that the profit will not reach the expected of £186 million ($232.7M/€216M). Different analysts have discovered that the problems came up when British and American wholesalers have limited their stock.
Therefore, EQT has received a discount on the former prize. “The price represents a 44% premium to Dechra’s closing share price on April 12—before EQT’s interest became public,” the Financial Times writes.
Dechra Pharmaceuticals acts globally. In 19 European countries, the company earns 49% of its total revenue. In 2022, Dechra announced a total revenue of £681.8 million ($852.9M/€793.8M) of which 74.6% were generated through its pet’s portfolio and 5.1% through dog and cat food products. 40% of the company’s products shall be produced in own production sites.
EQT is a private-equity business that mainly concentrates on healthcare, technology service and industrial. There are currently 57 companies and 147 investment advisory professionals in EQT’s portfolio. Recently, it has further increased its impact in the pet industry by having bought into pet insurance business Bought By Many.