Dechra to take major stake in Genera

3rd Aug 2015 09:09

(ShareCast News) - Croatian animal health supplier Dechra has offered €51.4m for a majority stake in pharmaceutical business Genera.The move will get Dechra into the poultry vaccine market with the potential to explore vaccines for other animals, the company said.Dechra said it would buy 63.3% of Genera at a purchase price of €23.66 per share, equivalent to €51.4m for the entire share capital.The price was a 42.5% premium to Genera's average price for the last three years, and will be funded from Dechra's existing debt facilitates.Last year, Genera reported revenues of €28.4m and earnings of €3.1m.The deal was conditional on shareholder approval, and was not expected to enhance earnings in the first two years.N+ 1 Singer said while Dechra paid a premium price for the acquisition it would bring a number of benefits over time.Analysts kept their rating at 'hold' and said Dechra was a core mid-cap holding in the sector.Shares in Dechra were down 0.25% to 982p at 0815 BST.