Orion Corporation (Orion), a Finnish pharmaceutical company, has entered into an agreement with the private Belgian company Inovet BV (Inovet), for the acquisition of its wholly owned subsidiary VMD NV and all companies belonging to the VMD NV group.
VMD is a veterinary pharmaceutical company specializing in medicines and health products for farm animals. It also has products for companion and other animals. VMD is headquartered in Arendonk, Belgium. VMD has production facilities in Arques (manufacturing) and Arendonk (packaging) in France, as well as its own sales operations in Belgium, France, Hungary and Vietnam. VMD's turnover in 2021 was EUR 61 million, and the company made a profit. As a result of the transaction, 181 VMD employees will be transferred to the Orion Group.
Through the acquisition, Orion's Veterinary Medicines unit will expand its product offering and gain a foothold in the production animal market, expand its geographical presence in Western Europe and the export market, and acquire a production facility specializing in the manufacture of veterinary medicines. In addition, the acquisition supports the Orion Group's growth strategy.
The debt-free purchase price is approximately EUR 130 million. The transaction will be financed from Orion's cash resources. The immediate cash flow effect is approximately EUR 90 million. The transaction will have a positive effect on the net sales and EBITDA of Orion's Veterinary Medicines unit from 2022 onwards. The impact on the Orion Group's net sales and earnings is not material, and the acquisition will not affect Orion's February 2022 outlook for the full year 2022. Orion will report VMD's net sales as part of the Veterinary Medicines unit's net sales as of June 2022.
The agreement was signed and the transaction was completed simultaneously today, June 15, 2022.
