Dechra Pharmaceuticals has agreed a £4.5bn takeover bid from Swedish private equity firm EQT.
The Northwich-based vet products group has been in talks since April over the deal which, if backed by shareholders, would be one of the biggest take-private moves in the UK so far this year.
The final offer from EQT is lower than the price it initially tabled.
READ MORE: Click here to sign up to the BusinessLive North West newsletter
The agreement comes after Dechra Pharmaceuticals issued a profit warning last month.
The company floated on the London Stock Exchange in 2000 with an equity capitalisation of £60m. It now has operations in 26 countries and almost 2,500 employees.
Dechra chair Elizabeth Alison Platt said: "Since IPO in 2000, the successful pursuit of our growth strategy under Ian's leadership has seen Dechra develop from a specialist UK only veterinary distribution business into a global veterinary pharmaceuticals and related products business, ranked seventh globally by revenues, with operations in 26 countries and over 2,400 employees.
"Dechra is now recognised as a global leader in therapeutic areas such as endocrinology and topical dermatology, as well as being an innovator in specialisations such as the treatment of equine lameness and differentiated generics.
"The Dechra board considers EQT, together with ADIA, to be highly experienced investors with a strong sector understanding who will, we believe, prove to be responsible and supportive owners of Dechra and who can build on this legacy and further accelerate the Dechra Group's growth.
"As such, it is our view that accepting this proposal represents the best interests of all stakeholders and in particular represents a compelling opportunity for shareholders to realise, in cash and with certainty, Dechra's potential for future value creation."
Anthony Santospirito, partner in the EQT Private Equity advisory team, added: "Dechra is a high-quality, innovative business founded in the UK with an impressive global footprint.
"With medical innovation accelerating and pet ownership increasing, the animal health sector is expected to benefit from long-term growth and we believe Dechra is well positioned to participate in this significant opportunity.
"We plan to support Dechra's talented management team accelerating their business strategy and long-term growth in an increasingly competitive environment by providing, where needed, additional investment in its innovative pipeline and further supporting global expansion.
"We believe that private ownership will enable Dechra's management team to take a longer-term view as it focuses on accelerating growth."
READ MORE:
