Huvepharma, the Bulgarian multinational feed additive business, has agreed to acquire a portfolio of animal health products and US manufacturing assets from Zoetis, the world’s largest animal health company. The $40 million deal should complete in Q1 2016, with Huvepharma expecting to supply the new products from February 1st.
Zoetis says the divestment comprises feed additive, water soluble therapeutic and nutritional products for livestock sold on the US and international markets. These activities were identified as non-core and low margin in a company-wide efficiency review earlier this year.
The product portfolio includes the medicated feed additives Albac (not in the US), Bio-Cox / Salinomax and the Inovocox EM1 coccidiosis vaccine for broilers; the water soluble veterinary products R-Pen, Oxytet, Sul -Q-Nox, CTC, Lincomycin, Poultry Sulfa and Neo-Sol and pharmaceutical products including Lincocin Forte, Stockade, Bacivet, Combiotic and Quadrisol which are predominately sold in Europe.
Along with these products, Huvepharma will gain two Zoetis manufacturing sites in the US, located in Laurinburg, North Carolina and Longmont, Colorado (which includes a formulation facility) plus a leased factory at Van Buren in Arkansas. Employees at all three sites will transfer to Huvepharma.
"We are extremely excited about this acquisition from Zoetis which reinforces and builds upon our commitment to our customers in providing high quality products for livestock, produced in our EU and US based facilities,” says Kiril Domuschiev, president and owner of Huvepharma. ”We remain dedicated to our strategy of creating a fully integrated corporate structure for producing world class products and services for our global customer base. We are satisfied that the strong brands associated with these assets will continue to strengthen our position in key markets and reinforce our growth potential."
Glen Wilkinson, president of Huvepharma USA, adds: "This acquisition advances Huvepharma’s strategy in the animal health market and further strengthens our current portfolio of products. It is yet another milestone for our company and we look forward to integrating the products and production sites so we can realize the value these additions will produce for the company and its customers worldwide."
Zoetis says the transaction is part of its operational efficiency program, announced in May 2015, aiming to reduce complexity, optimise resource allocation and position the company for long-term profitable growth. The products to be divested are a portion of the lower revenue, lower margin product units in the range that Zoetis expects to eliminate to help improve profitability and enhance the reliability and efficiency of its supply network.