Acquisition

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.

Conference dial-in facility

An analysts presentation will be held today (22 October) at 8.30am (BST) via dial-in conference. Details are as follows:

Confirmation Number           3746837

Host                                    CEO Ian Page

Company                             Dechra Pharmaceuticals

London Local                        0208 817 9301

UK Lo Call                            0845 634 0041

UK Freephone                      0800 634 5205

Enquiries:
Ian Page, Chief Executive	Fiona Tooley, Director
Simon Evans, Group Finance Director	Keith Gabriel, Senior Account Manager
Dechra Pharmaceuticals PLC	Citigate Dewe Rogerson
Telephone: + 44 (0) 1782 771100	Telephone: [phone]
Mobile: [phone] (IP)	Mobile: [phone] (FT)
Mobile: [phone] (SE)
www.dechra.com	Ticker: Premium Listing (Pharmaceuticals): DPH

Trademarks appear throughout this release in italics.  Dechra and the Dechra 'D' logo are registered Trademarks of Dechra Pharmaceuticals PLC.

Forward-Looking Statements

This announcement contains certain forward-looking statements.  The forward-looking statements reflect the knowledge and information available to the Company during the preparation and up to the release of this announcement.  By their very nature, these statements depend upon circumstances and relate to events that may occur in the future thereby involving a degree of uncertainty.  Therefore, nothing in this announcement should be construed as a profit forecast by the Company.

 

END

 

 

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