Its US Acquisition seems to be...22 Oct 2010 13:53
..impressing the market:
RNS Number : 8248U
Dechra Pharmaceuticals PLC
22 October 2010
Issued by Citigate Dewe Rogerson, Birmingham
Date: Friday, 22 October 2010
Dechra® enhances its US business
through acquisition
Dechra Pharmaceuticals PLC ("Dechra" or "the Group") is pleased to announce the acquisition of DermaPet Inc. ("DermaPet").
The maximum cash consideration for the acquisition is US$64 million;
· US$42 million has been paid on completion;
· Payments of US$1 million are due on the second and fourth anniversaries of the completion date;
· US$15 million will become payable between the second and sixth anniversaries of completion if DermaPet achieves revenues in excess of US$15 million in any rolling 12-month period following the first anniversary of completion;
· If revenues on the same criteria exceed US$20 million, a further US$5 million will become due.
DermaPet, a Florida based business was established in 1991 by a leading veterinary dermatology referral specialist, Dr Steve Melman. DermaPet develops and markets a range of dermatological preparations, including shampoos, conditioners and ear products, for the US and overseas companion animal markets. These veterinary products are marketed and distributed through the same channels as Dechra's current US product portfolio.
Dermatological problems are the most frequently diagnosed and treated conditions in companion animals by veterinarians. The range of innovative products, which have five granted patents and one pending, increases Dechra's US presence and complements its EU range in this key strategic therapeutic category.
For the six months ended 30 June 2010, DermaPet's revenue was US$6.9 million and pre-tax income was US$3.0 million. Gross assets at 30 June 2010 were US$2.8 million. In the last full financial year ended 31 December 2009, DermaPet achieved revenue of US$10.7 million and pre-tax income of US$4.0 million. Gross assets at 31 December 2009 were US$2.4 million.
Ian Page, Chief Executive of Dechra, commented:
"This acquisition is expected to be materially earnings enhancing in its first full year of ownership. It also further strengthens our position as a leader in the worldwide veterinary dermatological market whilst significantly increasing our presence and scale of operation in the United States.
The DermaPet brand and the high quality natural product line is a perfect fit with our existing dermatological range and accelerates Dechra's strategic objective of becoming a leading supplier of specialist veterinary exclusive products in this key market."
The Group has also agreed a new £78 million four-year bank facility which will replace the Group's existing borrowing facilities and finance this acquisition.
An analysts presentation will be held today (22 October) at 8.
Sign In
Follow the stocks
