EQT ups bet on pet industry with $5.6 bln Dechra deal

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Swedish private equity firm EQT has agreed to buy London-listed veterinary drugmaker Dechra Pharmaceuticals for 4.46 billion pounds ($5.62 billion) in the biggest takeover deal in Britain so far this year.

Lower than 40.70 pounds proposed before Dechra profit warningJune 2 - Swedish private equity firm EQT has agreed to buy London-listed veterinary drugmaker Dechra PharmaceuticalsEQT will pay 38.75 pounds per Dechra share in cash, the companies said on Friday, lower than the 40.70 pounds itDechra's stock, a pandemic darling that shot to a record high in 2021 after people bought more pets for company during lockdowns, has lost more than a third of its value since the all-time high.

"In our view the price reduction from the initial potential offer is disappointing," they wrote in a note to clients. The move to take Dechra private will be a loss for London's stock market, whose rules are set to be radically simplified in an effort to attract companies back to the city after it lost out on some major listings such as chipmaker Arm.

But healthcare was a bright spot, accounting for 15% of global M&A in January-May - one of only two sectors to see growth in deal value.

 

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