U.K. Dechra Pharmaceuticals Finalising Acquisition of Genera in Q3 2015

Ian Page, CEO Dechra PharmaceuticalsLPJ Issue 145, 24 August 2015

On 19 August, Ian Page, CEO of the U.K. pharmaceutical company Dechra Pharmaceuticals, stated they would finalise their acquisition of the Croatian drug producer Genera by October 2015.

The takeover was set in motion after Dechra announced, on 3 August, they had signed a conditional share purchase agreement to acquire 63.3% of Genera from Genera’s majority shareholder, a well-known Croatian lawyer and investor Marijan Hanzekovic (see LPJ Influence p.6). In addition to the purchase of Hanzekovic’s stake, an offer has also been given to minority shareholders at the same price. As a result of Dechra offer to pay €23.66 per share, the 63.3% stake is valued at €51.4 million. The acquisition will be financed by Dechra’s existing debt facility.

In accordance with the Croatian takeover legislation, the U.K. company is required to make a mandatory offer for the remaining shares in Genera; the above agreement is conditional upon shareholder aggregate acceptance reaching 75% of Genera’s issued share capital. In terms of earnings, Dechra expects the acquisition to be neutral in its first two years, followed by a gradual increase in revenue…

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