Acquisition

Dechra Pharmaceuticals PLC
9 April 2002


Issued by Citigate Dewe Rogerson, Birmingham

Date: Tuesday 9 April 2002     Embargoed 7.00am



                             Dechra Pharmaceuticals

                    acquires specialist laboratory business


Dechra Pharmaceuticals PLC ('Dechra' or the 'Group'), manufacturers and
distributors of pharmaceuticals and veterinary equipment, today announces that
it has acquired North Western Laboratories Limited ('NWL') and its subsidiary
Cambridge Specialist Laboratory Services ('Cambridge'). The acquisition enhances
the Group's service offering to the veterinary profession, strengthens the
development and marketing position in veterinary pharmaceuticals and it is
expected to be earnings enhancing in the year ending 30 June 2003.


Dechra will pay a maximum consideration of £2.75 million of which, £2.0 million
will be satisfied in cash (of which £0.5 million will be deferred for up to 2
years following completion) together with the issue of 468,750 new ordinary
shares at 160 pence per share - being the mid-market price at the close of
business on 5 April 2002.


NWL, based in Poulton-le-Flyde, is the only veterinary laboratory with UKAS
accreditation (United Kingdom Accreditation Service). It was established in 1950
and was acquired by the present directors in 1983 from Bedall Laboratories. NWL,
a multi disciplined independent commercial veterinary laboratory, provides
diagnostic and clinical pathology services covering over 500 test options to
veterinary surgeons throughout the UK. Around 80% of its work is focussed on the
companion animal sector.


Cambridge Specialist Laboratory based in Sawston, South Cambridge, is the UK's
leading endocrine specialist. Its service offering covers a wide range of
activities including contract research & development, routine assays, assay
innovation & development and clinical trials. The Group's subsidiary, Arnolds
Veterinary Products(R) has for a number of years utilised the skills and
knowledge at Cambridge in its product development programme which included the
recently launched licensed products, Vetoryl(R) and Felimazole(R).


NWL and Cambridge are well regarded within the industry for their high quality
service levels and clinical research methodologies. Both Companies will continue
to operate from their current locations and all directors, management and staff
will remain with the business.


In the year ended 31 March 2001, NWL and Cambridge had audited sales of £1.569
million and operating profits of £177,000. Pre-tax profits in the same period
amounted to £162,000. Net assets at 31 March 2001 were £80,000. In the eleven
months ended 28 February 2002, NWL and Cambridge achieved unaudited pre-tax
profits of £179,000 on sales of £2.095 million.


The acquisition clearly supports the Group's strategy:-


  • Extending the range of services available to the veterinary profession
    through Dechra's subsidiaries.


  • Increasing the range and quality of laboratory tests available to the
    veterinary profession nationally


  • Adding high technology development facilities to the Group's capabilities


  • Strengthens Dechra's position as leaders in endocrine pharmaceuticals


Commenting on the acquisition, Ian Page, Chief Executive, Dechra Pharmaceuticals
PLC said:


'Part of our strategy is to add higher margin specialist services to the Group's
portfolio - so we are delighted to be joining forces with the teams at NWL and
Cambridge who are renowned for quality and innovation and have been successful
in developing a loyal customer base. Together, we believe that we have a number
of opportunities which will allow us to further strengthen the Group's position
within the veterinary services and pharmaceuticals markets'.



Enquiries:

Ian Page, Chief Executive (07775 642222)             Fiona Tooley (07785 703523)

Simon Evans, Group Finance Director (07775 642220)   Katie Hall (07980 274790)

Dechra Pharmaceuticals PLC(R)                        Citigate Dewe Rogerson

Tel: [phone]                                    Tel: [phone]

www.dechra.com




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