Dechra to be taken private in £4.5bn deal

The veterinary medicine firm said it had accepted an all-cash offer of 3,875p per share from Swedish private equity firm EQT and Luxinva, a subsidiary of the Abu Dhabi Investment Authority (ADIA).

The offer, made through the two firms’ Freya bidco, represents a 44% premium to the closing share price on 12 April, when the offer period started, and a 15% premium to Thursday’s closing price.

It is, however, lower than an initial approach of 4,070p per share.

EQT has long had Dechra in its sights, and made a number of unsolicited bids - all of which were rejected - before its indicative approach was accepted in April.

Last month, a put up or shut up deadline for EQT to make a firm offer or walk away was extended until 2 June, allowing talks to continue. The extension came shortly before Dechra warned that full-year operating profits would be below expectations, in large part because of de-stocking by wholesalers, sending the share sharply lower.

Recommending the new offer, Dechra chair Alison Platt said: "The 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."

Anthony Santospirito, EQT partner, said: "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, which debuted on the London market in 2000, now operates in 26 countries with more than 2,400 employees.