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Dechra's animal spirits undiminished

The veterinary pharmaceuticals group continues to expand through acquisition
January 26, 2018

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.