Dechra Pharmaceuticals agrees to £4.5bn takeover deal

Veterinary pharma company Dechra Pharmaceuticals has agreed a £4.5bn takeover deal from Swedish private equity firm EQT. The veterinary pharmaceutical company said it reached an agreement with Freya Bidco Ltd, a newly formed company indirectly owned by EQT X EUR SCSp and EQT X USD SCSp, which act through its manager EQT Fund Management and Luxinva. EQT is a Swedish global investment organisation, while Luxinva is owned by the Abu Dhabi Investment Authority, a sovereign wealth fund of the United Arab Emirates. The Northwich-based vet products group has been in talks since April over the deal and the offer for the veterinary pharmaceutical company, worth 3,875p per share, is below the terms of an indicative proposal from EQT of 4,070p per share. Dechra said it considered the terms “fair and reasonable” and intends "to recommend unanimously” the proposal to shareholders. Dechra has operations in 26 countries and almost 2,500 employees. Investec advised Dechra directors on the financial terms of the acquisition. Elizabeth Alison Platt, Dechra chair, said: "The Dechra board considers EQT, together with ADIA, to be highly experienced investors with a strong sector understanding who will, we believe, prove to be responsible and supportive owners of Dechra and who can build on this legacy and further accelerate the Dechra Group's growth. "As such, it is our view that accepting this proposal represents the best interests of all stakeholders and in particular represents a compelling opportunity for shareholders to realise, in cash and with certainty, Dechra's potential for future value creation." Anthony Santospirito, partner in the EQT Private Equity advisory team, added: "Dechra is a high-quality, innovative business founded in the UK with an impressive global footprint. With medical innovation accelerating and pet ownership increasing, the animal health sector is expected to benefit from long-term growth and we believe Dechra is well positioned to participate in this significant opportunity. "We plan to support Dechra's talented management team accelerating their business strategy and long-term growth in an increasingly competitive environment by providing, where needed, additional investment in its innovative pipeline and further supporting global expansion.”

Dechra Pharmaceuticals agrees to £4.5bn takeover deal

Investec advised Dechra directors on the financial terms of the acquisition

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