Dechra Pharmaceuticals

History

2023: EQT Partners bought Dechra Pharmaceuticals for $5.56 billion

On June 2, 2023, the Swedish investment company EQT announced the conclusion of an agreement to acquire the British manufacturer of veterinary drugs Dechra Pharmaceuticals. The transaction value is £4.46 billion (approximately $5.56 billion at the exchange rate as of June 2, 2023).

Dechra Pharmaceuticals specializes in the production of various animal products. These are particularly medicinal products for pets such as dogs, cats and rabbits. In addition, the company supplies goods for horses, cattle and pigs.

Investment fund EQT Partners bought the manufacturer of veterinary drugs Dechra Pharmaceuticals for $5.56 billion

According to Reuters, initially it was about the sale of Dechra Pharmaceuticals for £4.88 billion (approximately $6.08 billion). However, in the process of negotiations, the British manufacturer of veterinary drugs disclosed information about the projected reduction in profits. As a result, the final amount of the transaction was somewhat reduced. However, the agreed value represents a 44 percent premium to Dechra Pharmaceuticals' share price as of April 12, 2023, the day before the company announced a potential takeover.

After the asset transfer, EQT will own 74% of Dechra Pharmaceuticals, with the remainder assigned to the private equity arm of the sovereign wealth fund Abu Dhabi Investment Authority. The merger will be completed after the necessary regulatory approvals are obtained. The future owners of Dechra Pharmaceuticals said they plan to support the company's current management, which unanimously approved the sale.

If the deal goes through, EQT will expand its presence in the pet products market. The group owns the British network of veterinary clinics IVC Evidensia, whose value in 2021 was estimated at €12.3 billion, as well as shares in the ManyPets insurer and the Zooplus online store.^[1]

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