Proposed Acquisition of Apex Laboratories Pty Ltd

LONDON, September 16, 2016

Dechra Pharmaceuticals PLC (Stock Code: Full Listing (Pharmaceuticals): DPH) is pleased to announce that it has agreed terms to acquire the business and assets of Apex Laboratories Pty Ltd ('Apex'), a privately owned veterinary pharmaceutical company which manufactures, markets and sells branded non-proprietary prescription and other related companion animal products in Australia and New Zealand (the 'Acquisition'). The Acquisition includes the purchase of Apex's manufacturing site. Apex is ultimately controlled by Mr Anthony McGloin who is a descendant of the founder of Apex.

The Acquisition will provide Dechra with direct access to the established and growing Australian companion animal product market which has c.4.2 million dogs and c. 3.3 million cats*, a market in which Dechra currently operates through partners. It will also offer a base from which to support and build Dechra's expansion in the Australasian and Asian regions.

Apex, which was established in 1962, is based in Somersby near Sydney, Australia, and employs 39 staff. For the year ended 30 June 2016, its reported revenues were AUS$14.8 million (£8.4 million) and operating profit was AUS$5.2 million (£3.0 million). Dechra is acquiring gross assets with a carrying value of AUS$14.8 (£8.4 million) million at 30 June 2016.

Apex is currently managed by an experienced and technically skilled management team, who will be staying post completion to continue to run and manage the business.

The total consideration for the Acquisition, which is expected is to complete on 14 October 2016, is AUS$55.0 million (£31.3 million). This will be funded from the Group's own cash and debt resources. The acquisition is expected to be earnings enhancing in the first 12 months.

Commenting on the acquisition, Dechra's Chief Executive Officer, Ian Page said: