UK-based Dechra Pharmaceuticals buys local distributor RxVet for undisclosed sum
By Paul McBeth
Jan. 10 (BusinessDesk) - London-listed veterinary drugs maker Dechra Pharmaceuticals has bought local distributor RxVet for an undisclosed sum, continuing its expansion in Australasia over the past couple of years.
Northwich, UK-based Dechra completed its acquisition of Kapiti-based RxVet in December, and is keeping founders Peter Blaikie and Nick Gorman on to "help to increase market share and build Dechra's presence in the region," it said in a statement to the London stock exchange. The pharmaceuticals firm didn't say how much it paid, but said the Kiwi firm generated sales of $1.4 million in the March 2017 financial year, of which about half came from its own products.
RxVet has distributed Dechra products since it was set up in 2010 and offers a range of products for vets to treat dogs, cats and horses. The company touts its strong links to the local industry on its website, with Blaikie named president of the New Zealand Veterinary Association last year, and Gorman a 15-year veteran in animal pharmaceuticals having previously held a senior role at Intervet Schering Plow.
The acquisition is small for Dechra, which generated a profit of 28.6 million British pounds on revenue of 359.3 million pounds in the 2017 financial year, and follows an expansion into Australasia with a 2016 purchase of Apex Laboratories for A$55 million. That deal gave Dechra direct access to Australia's pet market which had previously been serviced through partners, and allowed it to build a "base from which to support and build Dechra’s expansion in the Australasian and Asian regions", it said in its 2017 annual report.
The RxVet bolt-on acquisition was noted in a trading update to the London stock exchange, which said Dechra increased revenue on a constant currency basis 11 percent in the final six months of 2017.
The shares rose 2 percent to 20.46 pounds overnight.