A £175m deal has been agreed for a Cheshire-headquartered veterinary pharmaceuticals business to buy a counterpart in the US.
Dechra Pharmaceuticals is set to acquire Piedmont Animal Health which specialises in developing products for pets.
The Northwich company has also announced plans to conduct a non-pre-emptive placing to raise approximately £180m by issuing more than 5.2 million new ordinary shares which represent about 4.8% of its existing issued share capital.
READ MORE: Click here to sign up to the BusinessLive North West newsletter
Dechra said the raise would "also provide balance sheet flexibility to execute on an active acquisition pipeline including on one near term opportunity which the company is in exclusive discussions to acquire with an acquisition price similar to Piedmont".
Piedmont was founded in 2001 in Greensboro, North Carolina, and employs a development team of 19 people.
Dechra said the US firm has eight products in various stages of development serving both the cat and dog markets.
The two lead development products are expected to launch in financial years 2024 and 2025 with an forecast peak sales potential of at least $40m, it added.
READ NEXT:
- Revenue jumps towards £1bn at firm building £365m Co-op Live arena
Apprentice firm based at Manchester United stars' UA92 branded 'inadequate'
Shares fall 34% at fashion brand In The Style after loss-making year
Owner of Manchester, East Midlands and Stansted airports unveils five new climate pledges
Hundreds of Liverpool dockworkers to vote on strike action in pay dispute
