The chief executive of Dechra Pharmaceuticals has had his eye on two European veterinary pharmaceutical companies for a couple of years. Ian Page had rung the brothers behind AST Farma and Le Vet to sound them out but they were not ready to part with the businesses they had built.
Fast forward a couple of years and the situation has changed. Dechra bid a number that was close enough to what the brothers wanted and the two entered into exclusive talks. That deal was unveiled to the City yesterday and was well received.
Dechra has agreed to pay €340 million (£298 million) for AST and Le Vet on a debt-free and cash-free basis. The acquisition is being financed 75 per cent in cash and 25