LONDON, UK: Freya Bidco Limited has agreed to acquire entire issued, and to be issued, ordinary share capital of Dechra Pharmaceuticals at the rate of 3,875 pence in cash for each Dechra share. Freya Bidco Limited is a newly formed company to be indirectly owned by EQT Funds and Luxinva S.A.
The acquisition values Dechra’s entire issued, and to be issued, ordinary share capital at approximately £4.459 billion on a fully diluted basis, and implies an enterprise value of £4.882 billion and a multiple of approximately 25.9 times Dechra’s EBITDA for the twelve months ended 31 December 2022 of £188 million.
It is intended that the acquisition will be implemented by way of a court-sanctioned scheme of arrangement under Part 26 of the 2006 Act.
Dechra has an attractive portfolio of products and pipeline and is perceived as a leading specialist by vets and customers in the market segments in which it operates. The company is led by a high quality and experienced management team, with a clear vision and strategy for the future direction of the business.
EQT believes it is well positioned to support Dechra’s next phase of growth by virtue of its insights and understanding developed from existing and former investments across the animal health value chain. EQT has a strong track record of deploying capital and expertise into growth-orientated businesses and supporting their management teams in achieving their strategic ambitions.
Commenting on this announcement, Elizabeth Alison Platt, the Chair of Dechra, said: “Since IPO in 2000, the successful pursuit of our growth strategy under Ian’s leadership has seen Dechra develop from a specialist UK only veterinary distribution business into a global veterinary pharmaceuticals and related products business, ranked seventh globally by revenues, with operations in 26 countries and over 2,400 employees. Dechra is now recognised as a global leader in therapeutic areas such as endocrinology and topical dermatology, as well as being an innovator in specialisations such as the treatment of equine lameness and differentiated generics.
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.”
Commenting on this announcement, Anthony Santospirito, Partner in the EQT Private Equity advisory team, said: “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. We believe that private ownership will enable Dechra’s management team to take a longer-term view as it focuses on accelerating growth.”
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