Summary
Zoetis Inc. announced the completion of its acquisition of Pharmaq Holding AS, a leading global animal health company specializing in aquatic health. The acquisition was finalized on November 10, 2015, for an aggregate cash purchase price of approximately $765 million. This strategic move expands Zoetis's portfolio into the growing aquaculture sector, a key area for animal health innovation and market expansion. The company financed the acquisition through a $765 million revolving loan under its existing credit agreement, which was utilized for this purpose. This acquisition is expected to strengthen Zoetis's position in the animal health market by adding Pharmaq's specialized products and expertise. The company has also secured increased leverage ratio flexibility under its credit agreement to accommodate this material acquisition. Investors should monitor the integration of Pharmaq and its contribution to future revenue and profitability growth for Zoetis.
Key Highlights
- 1Zoetis Inc. has completed the acquisition of Salar Topco AS (Pharmaq Holding AS), a specialist in aquatic animal health.
- 2The transaction closed on November 10, 2015, with a cash purchase price of approximately $765 million.
- 3The acquisition of Pharmaq significantly expands Zoetis's presence in the aquaculture animal health market.
- 4Zoetis financed the acquisition through a $765 million revolving loan under its existing credit facility.
- 5The acquisition has been designated a 'Material Acquisition', temporarily increasing Zoetis's permitted leverage ratio.
- 6A press release announcing the completion of the acquisition was issued on November 10, 2015.