Growth through acquisition continues to be the game plan for Dechra (DPH) and this time it has gone fishing in the US. The veterinary pharmaceuticals group has announced its intention to purchase Portland-based Putney Inc for $200m, in an acquisition that will be partly funded by the placing of 4.4m new shares to raise £48.4m.
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1168p
It's an exciting opportunity for Dechra's US business which, despite recent rapid growth, remains small. In 2015 Putney Inc generated $50m of sales and will therefore more than double the size of Dechra's US division. The target group is currently lossmaking, but analysts are expecting it to be earnings enhancing to Dechra by 2017.