Putney merges with Dechra Holdings US
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Mar
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ragupathyrenganathan
Putney merges with Dechra Holdings US
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Portland, Maine
Tuesday, March 15, 2016, 17:00 Hrs  [IST]

Putney, Inc., a rapidly growing pet pharmaceutical company focused on the development and sale of generic prescription medicines for pets, announced the signing of a definitive agreement to sell 100 per cent of the company to Dechra Holdings US Inc., a subsidiary of Dechra Pharmaceuticals PLC.

The total consideration payable for Putney amounts to $200 million in cash at completion on a debt-free/cash-free basis. Dechra Pharmaceuticals PLC is a UK-based company that develops, manufactures and sells specialty veterinary pharmaceuticals and related products, reported FY2015 revenues of £203.5million (US$300 million). Putney’s net revenues were $49.6 million in 2015. Upon closing of the transaction, which requires approval by US regulators, the combined resources of Putney and Dechra will create a larger US companion animal pharmaceutical company with complementary products marketed through national and regional veterinary distributors as well as direct to veterinary practices across the United States. The companies anticipate that the transaction will close in April 2016.

Jean Hoffman, founder, president and CEO of Putney, stated, “I am incredibly proud of the value that the Putney team has built. The sale underscores the success of Putney’s commercialized product portfolio and our robust development pipeline, which we have built from the ground up since I founded the company in 2006. Putney is the leader in pet generic drugs by any measure: revenues, pipeline, FDA approvals and market share. This combination takes advantage of both Putney’s and Dechra’s complementary scientific knowledge, regulatory expertise and product development and commercialization skills. In addition, the expanded combined product lines enhance the veterinary channel prowess of the combined company,” said Hoffman.

Ian Page, CEO of Dechra Pharmaceuticals, PLC, says Dechra is eager to seize the growth opportunity that Putney has established. “In line with our strategy, the acquisition of Putney will significantly strengthen Dechra’s position in the US and will provide high quality FDA approved veterinary products and strengthen our pipeline. We are delighted to secure this unique opportunity which adds scale and additional expertise to our North American business,” says Page.

Jefferies LLC served as exclusive financial advisor to Putney on the transaction. Putney’s legal advisor is Latham & Watkins LLP.



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