Ascendis to buy all of Kyron Labs
Ascendis will acquire 100% of Kyron’s issued share capital and debt for R450m
Ascendis Health, which has recently come under pressure amid concerns about its ability to grow organically, said on Tuesday it had reached an agreement to acquire 100% of veterinary services group Kyron Laboratories.
The acquisition of the group would entail Ascendis acquiring 100% of Kyron’s issued share capital and debt for a total consideration limited to R450m, Ascendis said in a statement.
This included a R396.4m payment in cash and shares to current owner Nixsim, as well as two further payments based on Kyron’s performance.
Kyron supplies equipment, pharmaceutical products and consumer pet products through wholesalers to more than 1,000 veterinary practices in sub-Saharan Africa.
The proposed deal would complement existing therapeutic areas, with an aim to create a group of healthcare brands covering the full value chain.
Some analysts have pointed to recent declines by Ascendis as motivated by shareholder concern regarding the company’s debt levels and organic growth. Ascendis closed 2.65% higher to R15.50, having lost 39.22% so far in 2017.