Vet360 Vol 4 Issue 4 August 2017 Vet 360 | Page 2

ASCENDIS HEALTH ACQUIRES CIPLA AGRIMED AND CIPLA VETERINARY BUSINESSES FOR R375 MILLION Pictured successfully concluding the acquisition, Jayen Pather MD Ascendis Phyto-Vet, Dr Craig Mincher MD Cipla Vet, Dr Jan Wentzel MD Cipla Agrimed. Cape Town – Ascendis, the JSE listed, high-growth health and care brands group recently finalised the acquisition of Cipla Agrimed Proprietary Limited and Cipla Vet Proprietary Limited for R375m. This acquisition includes a potential adjustment to the price tag in relation to actual working capital, net debt and audited profits achieved for the period ended 31 March 2017. Cipla Vet (companion animals) and Cipla Agrimed (commercial animals) sell a range of high quality animal medicines. The business was established in 2004 and the sale follows the decision by Cipla Medpro to divest its Southern African veterinary operations to focus on human health care only in South Africa. Ascendis Health CEO Dr Karsten Wellner said the Cipla animal health businesses in South Africa provide an excellent strategic fit with the Ascendis Phyto-Vet division which focuses on animal and plant health products. “The acquisition will enable Ascendis to expand into the attractive veterinary pharma market, with high margin products in strong growth segments. The new business will complement our presence in the pharma industry and Phyto-Vet’s biosciences business, while adding therapeutic products to our portfolio which is an area where Ascendis has not had a strong representation in the past,” he said. Cipla Vet sells through over 1 000 outlets including vet practices, vet shops, equine stores and wholesalers. The business has a strong presence in antibiotics, and endo- and ectoparasiticides, with key brands including Triworm and Petcam. Cipla Agrimed has a leading position in antimicrobials and endectocides in South Africa which are sold mainly through agri-co-operatives, tenders and directly to large intergrators. Dr Wellner said currently only about 10% of Cipla’s veterinary sales are generated through export into Namibia, Botswana, Zambia and Angola. “This provides an excellent opportunity for synergies through Phyto-Vet’s existing African network. The Cipla products will also support Phyto-Vet’s planned expansion into new African markets and the further internationalisation of the business.” “The acquisition will accelerate our entry into the veterinary pharma market and is strategically aligned with Phyto-Vet’s growth plans. Cipla’s animal health product range is highly regarded in the market and we are excited about the addition of these businesses which will be margin enhancing to the group,” concluded Dr Wellner. www.ascendishealth.com