Dechra to gobble up Putney in £140m deal

Veterinary group Dechra Pharmaceuticals looked set to expand its reach in the US market on Tuesday, announcing the conditional acquisition of Maine-based generic pet pharmaceutical developer Putney.

At the same time, the FTSE 250 firm announced it had placed 4,398,600 new ordinary shares at 1100p each, to raise £47.1m net of expenses to part-fund the acquisition.

Consideration for the deal totalled $200m (£139m), and was payable in cash on completion.

Dechra said it was the most complementary US acquisition they could identify, and would accelerate its North American strategy, potentially doubling US business within the planning horizon.

It also added critical mass to the group in the world's largest companion animal market, and would provide access to a high quality product range and complementary therapeutic focus area, the board outlined.

The acquisition was being funded through available cash, an extension to Dechra's existing credit facility and the placing. Dechra said the acquisition and placing were expected to be earnings enhancing in the 2017 financial year, and materially earnings enhancing thereafter.

"In line with our strategy, the acquisition of Putney will significantly strengthen Dechra's position in the US, provide high quality FDA approved veterinary products and broaden our pipeline," said Dechra chief executive officer Ian Page.

"We are delighted to secure this unique opportunity which adds scale and additional expertise to our North American business," he added.

The acquisition remained conditional upon US regulatory approval.