Acquisition

Dechra Pharmaceuticals PLC
20 May 2002



Issued by Citigate Dewe Rogerson, Birmingham

Date: Monday 20th May 2002

Embargoed 7.00am


                           Dechra Pharmaceuticals PLC

                    acquires contract manufacturing business


Dechra Pharmaceuticals PLC ('Dechra' or the 'Group'), manufacturers and
distributors of pharmaceuticals and veterinary equipment, today announces that
it has acquired Anglian Pharma plc together with its trading subsidiary Anglian
Pharma Manufacturing Limited ('Anglian'). This acquisition is part of the
Group's on-going strategy of strengthening its position within the
Pharmaceutical contract manufacturing sector and is expected to be earnings
enhancing in the year ending 30 June 2003.


Dechra will pay a consideration of £2.5 million of which, £1.5 million will be
satisfied in cash on completion together with the issue on completion of 182,216
new ordinary shares. £750,000 of the consideration will be deferred for 12
months and will be satisfied by the issue of 546,647 new ordinary shares
provided that if the consolidated net assets of Anglian Pharma plc at 17 May
2002 are less than £150,000 then such deferred consideration will be reduced on
a £1 for £1 basis.


All shares will be issued at 137.2 pence per share being the average mid market
price over the 5 days prior to 17 May 2002.


Anglian, based in Mablethorpe, Lincolnshire is a pharmaceutical contract
manufacturing business. It specialises in the manufacture of liquids, ointments
and solid dose pharmaceuticals. A substantial part of Anglian's business is on
medium to long term contracts. The operations of Anglian will merge with Dales,
the Group's existing manufacturing facility at Skipton in Yorkshire.


In the year ended 31 March 2001, Anglian achieved audited sales of £1.697
million and operating profits of £87,000. Pre-tax profits in the same period
amounted to £45,000. Net assets at 31 March 2001 were £150,000. In the year
ended 31 March 2002 Anglian achieved unaudited sales of £2.285 million.


The Directors believe the acquisition will enable Dechra:


  • to capitalise on significant operational synergies;

  • to strengthen the management team at Dales with retention of key managers
    in the operational and sales functions;

  • to accelerate capacity utilisation of the Dales manufacturing facilities.


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


'Our acquisition last month of North Western Laboratories and its subsidiary
Cambridge Specialist Laboratory Services, provided growth opportunities for NVS
and Arnolds. This acquisition of Anglian gives improved capacity utilisation and
efficiency to our Dales contract manufacturing operation.'



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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