A British takeover of a Croatian pharmaceutical company.
British company Dechra Pharmaceuticals, specialized for veterinary pharmaceuticals, will buy a 63 percent stake in the Croatian company Genera worth 210 million kuna.
The British signed the agreement with the majority owner of Genera, the well-known lawyer and publisher Marijan Hanžeković. Dechra will expand its operations in Croatia, which has a very important place in its strategy. Dechra is one of the top pharmaceutical companies in the world – with about 2.1 billion kuna of annual revenue, 452 million kuna of operating profit, with 800 employees and manufacturing plants in Great Britain, the Netherlands and the United States. In addition to Hanžeković, offer has been given to minority shareholders as well, according to a report in Poslovni.hr on August 4, 2015.
It is expected that the transaction will be completed by November 1, when new management will probably be named. This acquisition is just a first step in the strategic plan by which Dechra, which used to be a business partner of Genera, plans to keep its entire production in Croatia. In addition, in 2016 it plans to move to Croatia a part of its production from England as well. Also, over the next year, the new owner will inject new capital necessary for the next stage of the development of Genera.
There is a very good chance that the British will create new jobs in Genera. Dechra was impressed by young professional staff of Genera, the company which built its value and image on the know-how of its employees. The British company announced a takeover offer for the remaining shares as well, at the same price at which Hanžeković's shares were acquired. The price is 179.60 kuna (23.66 euros) per share, which amounts to 51.4 million euros for the whole of Dechra's equity in Genera. This is an opportunity for a good profit for minority shareholders.
The company has been completely restructured and has competitive products that were of interest to Dechra. Hanžeković will make about 11 million euros of profit on Genera. It was confirmed that the negotiations did not last long, and that Hanžeković considered the offer as excellent. What the minority shareholders will decide will be known soon. They will receive a written offer and then have 30 days to decide.
Dechra was interested in Genera because it wanted to enter the vaccine market, which is the fastest growing segment of veterinary medicine and with which it will significantly expand its portfolio of pharmaceutical products for animals.
