Vetoquinol (Paris:VETO) today confirms the completion of its acquisition of Clarion Biociências, a Brazilian veterinary laboratory based in the state of Goiás.
Founded in 1998, Clarion Biociências develops, manufactures and distributes veterinary medicine and non-medicinal products primarily targeting the livestock market. Thanks to its geographical presence at the very heart of Brazil's bovine breeding area, the laboratory enjoys a strong market share in the bovine segment (which accounts for more than half of the Brazilian animal health market), in particular with internal and external parasiticides (Contratack, Novatack, Eprino, Fiprotack, Altis). Clarion Biociências employs around 200 people, including a sales force of 70 people. The company generated net sales of over 50 million Brazilian Reais (around €12 million) in 2018. The Company has been recording a solid growth for over three years, fueled by the success of the launches of differentiated products and the strengthening of its sales team. Sales are expected to show a strong performance this year again.
With this acquisition, the Vetoquinol Group significantly strengthens its foothold in Brazil, the world's third largest animal health market. Vetoquinol first entered the market in 2011 with Vetoquinol Saúde Animal; the Group has since been focused on the development of its Essentials products for beef and dairy cattle, for swine and for companion animals. Clarion Biociências has a strong product pipeline close to being launched in both bovine and companion animal markets; some of these products will also be launched in the swine market in which Clarion Biociências is currently not playing; all of these promising projects together with the underlying Vetoquinol projects are expected to generate some substantial commercial synergies.
Vetoquinol's acquisition of a 90% equity stake in Clarion Biociências is entirely self-financed.
"We are delighted to have closed this acquisition and to welcome the Clarion Biociências employees onboard, especially its current General Manager whose role is essential in the development of this laboratory" said Vetoquinol CEO Matthieu Frechin. "We have been seeking to strengthen our business on this strategic market where our presence has been weak so far; Brazil is the world's number 1 bovine meat producer and exporter. Also, the companion animal market is booming. The potential for growth offered by Clarion Biociências existing and future products, and the expected synergies with the Vetoquinol Essentials products mark an important milestone for Vetoquinol's growth engine in the coming years. We shall join the top 15 players in Brazil with further ambitions for the future. Clarion Biociências and Vetoquinol teams are mobilized to start effective today the integration of the new entity in Vetoquinol Group and rapidly materialize the commercial synergies."
Next update: Q1 2019 sales, April 17, 2019 after market close.
Vetoquinol is a leading global player in the animal health sector with a presence in Europe, the Americas and the Asia-Pacific region.
As an independent pure player, Vetoquinol designs, develops and sells veterinary drugs and non-medicinal products intended for the livestock (cattle and pigs) and for pet (dogs and cats) markets.
Since its foundation in 1933, Vetoquinol has pursued a strategy combining innovation with geographical diversification. The Group's hybrid growth is driven by the reinforcement of its product portfolio coupled with acquisitions in high potential growth markets. Vetoquinol employs 2,132 people as at December 31, 2018.
Vetoquinol has been listed on Euronext Paris since 2006 (symbol: VETO).
For further information, go to: www.vetoquinol.com
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