Last time out, we noted that while Dechra (DPH) “may have the financial firepower to keep shopping…acquisition opportunities are becoming few and far between”. Well, the fast-expanding veterinary pharmaceuticals group has identified two in the form of Dutch animal pharmaceuticals firm AST Farma and European animal-focused company, Le Vet.
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The total consideration for these acquisitions is €304m (£266m), made up of a 75 per cent cash component with the remainder in new Dechra shares. To part-fund the deals, the group is to raise £105m through a placing of 5.1m new shares at 2,050p apiece, which represents around 5.5 per cent on its existing share capital. The group will also initiate a drawdown on a new banking facility.