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Dechra buys Apex Lab for AUD$55m

By Maryam Cockar

Date: Friday 16 Sep 2016

Dechra buys Apex Lab for AUD$55m

(ShareCast News) - Veterinary product manufacturer Dechra Pharmaceuticals agreed to buy the business and assets of Apex Laboratories, which sells branded animal products in Australia and New Zealand, for AUD$55m (31.3m).
The acquisition, to be finalised on 14 October, will be funded from cash and debt resources, and is expected to be earnings enhancing in the first 12 months.

FTSE 250-listed Dechra is buying gross assets with a value of AUD$14.8m (8.4m) at 30 June.

Sydney based Apex, had revenues of AUD$14.8m (8.4m) and operating profit of AUD$5.2m (3m) in the year ending on 30 June.

Through Apex, Dechra will have access to the growing Australian pet market which has about 4.2m dogs and 3.3m cats, as Dechra currently operates through partners in the country, and will also support Dechra's expansion in the Australasian and Asian regions.

Dechra's chief executive, Ian Page said Apex's portfolio offers a range of veterinary licensed products which are complementary to the company, making the business a natural fit within its therapeutic portfolio.

He added: "The facility produces a wide range of dosage forms and has capacity for growth. We believe that the combination of Dechra and Apex are well placed for continued growth in the Australasian and Asian veterinary pharmaceutical markets."

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