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Acquisition-hungry Dechra keeps buying

Veterinary pharmaceuticals company Dechra is set to acquire US group Putney Inc, with the help of a £48.4m fundraising
March 16, 2016

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.

IC TIP: Buy at 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.