Swedish private equity firm EQT has revealed its plans to acquire Dechra Pharmaceuticals, a British veterinary drugmaker, for a total consideration of 4.46 billion pounds ($5.62 billion). This landmark deal represents the largest transaction in the UK so far this year.
As per the agreement, each Dechra shareholder will receive 38.75 pounds per share in cash, reflecting a substantial premium of approximately 44% over the closing price prior to the commencement of the offer period.
Dechra Pharmaceuticals, renowned for its production of pharmaceuticals for pets such as dogs, cats, and rabbits, witnessed a 1% increase in its share price, reaching 33.74 pounds at the close of trading on Thursday.
The potential acquisition was first disclosed in April, with EQT initially proposing an offer of 40.70 pounds per Dechra share.
According to data released by LSEG Deals Intelligence, healthcare deals accounted for 15% of the total global mergers and acquisitions (M&A) activity during the first five months of 2023. In contrast, the overall value of European M&A deals experienced a decade-low figure during the same period.
Lucille Jones, Senior Manager at LSEG Deals Intelligence, highlighted that global private equity-backed deals declined by 55%, reaching a three-year low of $219.7 billion amid geopolitical tensions, volatile stock markets, and rising interest rates.
(Note: The exchange rate used in this article is $1 = 0.7923 pounds)