EQT AB has reached an agreement to take over UK veterinary drugmaker Dechra Pharmaceuticals Plc for a revised price of GBP4.46 billion (USD5.6 billion). The acquisition is the largest take private transaction in Europe so far this year.

Following the successful completion of the transaction, EQT will become the majority owner of Dechra, holding a 74% stake, while the remainder will be held by private equity firm Abu Dhabi Investment Authority. Under Ian Page's leadership, Dechra has seen significant growth as a UK veterinary wholesale distribution business since its inception in 1997. The company floated on the London Stock Exchange in 2000 with a market capitalisation of GBP 60 million. Today, Dechra is a global veterinary pharmaceuticals business, ranked seventh in the world in terms of revenues. It operates in 26 countries and employs 2,470 people. The company is known for manufacturing medicines for various pets, including dogs, cats and rabbits, and also produces products for horses, cattle and pigs.

Founded in 1994, EQT is a renowned global investment organization originating from Sweden. Its diverse portfolio includes investments in infrastructure, real estate, private companies and start-ups in Europe, North America and Asia Pacific. In 2022, EQT's assets under management stood at USD 227 billion.

In mid-April, Dechra announced ongoing negotiations with EQT over a potential sale agreement, which initially valued the firm at around GBP4.6 billion. After Dechra highlighted lower-than-expected underlying operating profit on 22 May, the two parties entered into discussions over a possible price reduction. Under the revised agreement, each Dechra shareholder will receive GBP38.75 per share in cash, representing a premium of approximately 44% compared to the closing price before negotiations began.