Orion Acquires Inovet’s Animal Health Business
STOCK EXCHANGE RELEASE – INSIDE INFORMATION
15 June 2022 at 9.30 EEST
Orion Acquires Inovet’s Animal Health Business
Orion Corporation (“Orion”) has entered into an agreement with Belgian private company Inovet BV (“Inovet”) to acquire its wholly owned subsidiary V.M.D. NV and all companies belonging to V.M.D. NV’s group of companies (V.M.D. NV and its subsidiary companies collectively, “VMD”). VMD is a veterinary pharmaceuticals company specialised in medicines and health products for livestock. It also has a product portfolio for companion animals and minor species. VMD is headquartered in Arendonk, Belgium. VMD has production sites in Arques, France (manufacturing) and in Arendonk (packaging) as well as its own sales operations in Belgium, France, Hungary and Vietnam. VMD’s revenues in 2021 were EUR 61 million, and the group was profitable. Following this acquisition, the 181 employees of VMD will join the Orion Group.
Through this acquisition, Orion’s Animal Health unit will expand its product portfolio and get a foothold in the livestock market, expand its own geographical presence to Western Europe and expand export markets, and gain a production unit that is specialised in manufacturing of veterinary medicines. The acquisition also supports Orion Group’s growth strategy.
The transaction price is approximately EUR 130 million debt free. The transaction will be funded from Orion’s cash reserves. The immediate cash flow impact of the transaction is approximately EUR 90 million. The transaction will have a positive impact on Orion Animal Health unit’s net sales and EBITDA starting from 2022. The impact on Orion Group’s net sales and operating profit is not material and the transaction does not impact Orion’s outlook for 2022, given on 10 February 2022. Orion will report VMD’s net sales as part of Orion Animal Health’s net sales as of June 2022.
The agreement was signed and the transaction was completed simultaneously today on 15 June 2022.
“We are pleased to welcome our new colleagues to the Orion team. With this acquisition, Orion Animal Health becomes a comprehensive animal health company with wider geographical presence and broad product portfolio covering both companion animals and livestock. In addition, we are strengthening our manufacturing capabilities,” said Timo Lappalainen, CEO of Orion Corporation.
“I believe that becoming part of the Orion family ensures the further growth of our business. I have a very good feeling about the new collaboration with the Orion Animal Health unit – mindsets and spirits are very similar to ours. We are looking forward to joining forces and strengthening our presence in the consolidating animal health industry,” said Jan Moons, CEO of Inovet.
V.M.D. NV, established in 1973, is a veterinary pharmaceuticals company headquartered in Arendonk, Belgium. Until the transaction it was a wholly owned subsidiary of the Belgian family-owned private holding company Inovet BV. VMD’s product portfolio consists of over 200 generic products which are sold in more than 120 countries. VMD has a production site in Arques, France, logistics and packaging operations in Arendonk as well as its own sales operations in Belgium, France, Hungary and Vietnam. VMD is currently expanding its manufacturing capacity at the Arques site. The companies Biové Laboratoires SAS, Biard SAS, V.M.D. Állatgyógyászati Kft and Inovet Indochine Co., Ltd. are part of VMD.
Webcast and conference call
A webcast and a conference call for analysts, investors and media will be held today on Wednesday, 15 June 2022 at 11.00 EEST. Please register and join the live webcast at https://orion.videosync.fi/press_conference_06_2022
Questions can be asked through the webcast chat function. A recording of the webcast and the presentation material will be available on Orion’s website https://www.orion.fi/en/investors later today.
To participate the conference call, please dial:
Finland: +358 9 817 103 10
Sweden: +46 8 566 426 51
United Kingdom: +44 333 300 0804
United States: +1 631 913 1422
President and CEO
SVP, Corporate Functions
Tuukka Hirvonen, Investor Relations, Orion Corporation
tel. +358 10 426 2721
Orion is a globally operating Finnish pharmaceutical company – a builder of well-being. Orion develops, manufactures and markets human and veterinary pharmaceuticals and active pharmaceutical ingredients. The company is continuously developing new drugs and treatment methods. The core therapy areas of Orion's pharmaceutical R&D are oncology and pain. Orion's net sales in 2021 amounted to EUR 1,041 million and the company had about 3,350 employees at the end of the year. Orion's A and B shares are listed on Nasdaq Helsinki.