Dechra Pharmaceutical PLC (LON:DPH) shares purred on Friday morning after it announced the acquisition of a fellow animal drugs maker in Brazil and confirmed it was trading in-line with expectations.
FTSE 250-listed Dechra is paying £37.8mln for Laboratorios Vencofarma do Brasil – A.K.A Venco – which has a large portfolio of vaccines and other livestock products.
Venco predominantly sells its 200+ products within Brazil and other South American countries, and generated revenue of £11.6mln in 2017.
READ: Dechra makes bolt-on acquisition
The acquisition provides Dechra with a “strategically important presence” in Brazil, the fourth largest livestock market in the world.
“We are delighted to acquire the Venco business, and to be able to establish a footprint in the rapidly expanding South American markets, with a broad portfolio of animal health products,” said chief executive Ian Page.
“Whilst the Venco business is performing and growing well, like the Brovel acquisition in 2016, we will invest to expand and further upgrade the business over the next 2 to 3 years to create increased value to Dechra and its stakeholders.”
In a separate statement ahead of its annual general meeting (AGM), Dechra said trading was in-line with expectations in the first quarter, with continued year-on-year above market growth in both its European and North American businesses.
“The board is confident in achieving its expectations for the current financial year, and in the continued out-performance of the markets in which it operates,” read the update.
Shares rose 3.1% to 2,226p.