Dechra Pharmaceuticals PLC shares soared 7.7% after it agreed a £4.46bn bid from Swedish private equity firm EQT.
The offer for the veterinary pharmaceutical company, worth 3,875p per share, is below the terms of an indicative proposal from EQT of 4,070p per share made in April.
In a statement, Dechra said the deal implied an enterprise value of £4.88bn of the business and a multiple of around 25.9 times Dechra's EBITDA for the 12 months ended 31 December 2022 of £188mln.
Dechra said it considered the terms “fair and reasonable” and intends "to recommend unanimously” the proposal to shareholders.
Shares in Dechra plunged in May after it warned full-year operating profit will be below current guidance after de-stocking by a number of wholesalers.
The company said the trading environment during the period January to April had been more volatile and challenging than in February when the firm reported its interim results.
In early exchanges, shares in Dechra rose 7.7% to 3,634p, below the offer price.