Dechra Pharmaceuticals buys Brazil's Venco, trading in line
Dechra Pharmaceuticals announced the acquisition on Friday of Brazil's Venco for BRL185m (37.8m) as it said its performance in the first quarter was in line with management's expectations.
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The acquisition will be financed from Dechra's existing cash and borrowing facilities and is due to complete next month. Venco - which has a large portfolio of vaccines and other food producing animal products that it sells mostly in Brazil and other South American and international markets - generated revenues of BRL65m (£11.6m) in the year to the end of December.
The Londrina-based business also has a small range of companion animal products vaccines and pharmaceuticals, which are sold mainly on the Brazilian market. Overall it has over 200 current product registrations.
Dechra said the deal provides it with a strategically significant presence within the rapidly growing Brazilian and South American markets. The Londrina site, in the state of Parana, houses all the Venco business functions, including product development, manufacturing operations, sales and marketing and regulatory affairs.
Dechra said the site has enjoyed a period of recent significant investment in manufacturing operations, which has materially upgraded the facilities which have achieved regulatory licenses to operate.
Chief executive officer Ian Page said: "Whilst the Venco business is performing and growing well, like the Brovel acquisition in 2016, we will invest to expand and further upgrade the business over the next two to three years to create increased value to Dechra and its stakeholders."
The company also gave a very brief update on trading ahead of its annual general meeting, saying it saw continued year-on-year above market growth in the first quarter in both EU and North American pharmaceuticals.
"The board is confident in achieving its expectations for the current financial year, and in the continued out-performance of the markets in which it operates. We remain confident that Dechra and its proven strategy is well placed to sustain growth."