Swedish private equity firm EQT has agreed to acquire Dechra Pharmaceuticals, a British veterinary drugmaker, in a deal worth $6 billion. The deal is expected to close in the second half of 2023.
Dechra is a leading provider of veterinary medicines and services in the UK and Europe. The company has a strong track record of growth, with revenue increasing by an average of 15% per year over the past five years.
EQT is a leading global private equity firm with over $70 billion in assets under management. The firm has a strong track record of investing in the healthcare sector, with previous investments in companies such as Medtronic and Baxter Healthcare.
The acquisition of Dechra is a significant deal for EQT. It is the firm's largest investment in the UK to date and its first investment in the veterinary healthcare sector.
EQT said it plans to invest in Dechra to support the company's growth plans. The firm said it will focus on expanding Dechra's product portfolio, geographic reach, and digital capabilities.
The acquisition of Dechra is the latest in a string of deals in the veterinary healthcare sector. In recent years, there has been growing interest from private equity firms in the sector, which is seen as a relatively stable and growing market.
The deal is expected to be welcomed by Dechra's shareholders. The company's shares have risen by over 20% since the announcement of the deal.
Analysis
The acquisition of Dechra by EQT is a significant deal for both companies. It is a major coup for EQT, which has been looking to expand its presence in the UK healthcare market. For Dechra, the deal provides a new owner with the resources and expertise to help it continue its growth.
The deal is also a sign of the growing interest from private equity firms in the veterinary healthcare sector. The sector is seen as a relatively stable and growing market, with increasing demand for veterinary care from pet owners.
The acquisition of Dechra is likely to lead to further consolidation in the veterinary healthcare sector. As private equity firms continue to invest in the sector, we can expect to see more deals between smaller and larger companies. This will help to create a more competitive landscape and could lead to lower prices for pet owners.