January 5 (SeeNews) - Bulgarian drug maker Huvepharma has acquired U.S.-based animal health and nutrition company AgriLabs, the Sofia-based company's CEO said on Friday.
The acquisition also includes AgriLabs' product lines, Kiril Domuschiev, CEO of Huvepharma, said on his official Facebook account.
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“This acquisition furthers Huvepharma’s strategy in creating a balanced portfolio of products and enhancing our presence in the global market," Glen Wilkinson, president of Huvepharma, said, as quoted in Domuschiev's post.
"It also enables more rapid commercialization of biological products through Benchmark Biolabs, a subsidiary of AgriLabs and part of the acquisition of companies," Wilkinson added.
Both companies will continue operations under their current identities as integration opportunities are identified in 2018, the post reads.
On Wednesday, the Bulgarian government said it has approved a draft memorandum of understanding (MoU) with Huvepharma's veterinary drugs unit Biovet [BUL:53B] to support the implementation of an investment project worth 293.4 million levs ($180.3 million/150 million euro). The project envisages the construction of a plant for human medicinal substances and fodder additives, 90% of which are expected to be exported.
The plant, which will be located in the town of Peshtera, in southwestern Bulgaria, is planned to start operations in March 2020.
Currently, Biovet has three production plants - in Peshtera, Botevgrad, and Razgrad.
In November, Standard&Poor's Ratings Services said it has affirmed the BB long-term corporate credit rating of Huvepharma, as the company "is demonstrating its ability to significantly expand and gain market shares while improving its profitability."
"We expect capital expenditure (capex) to increase to 59 million euro in 2017 and about 80 million euro - 100 million euro per year in 2018 and 2019, which will be partially financed by drawing on its capex line of 150 million euro," S&P said at the time.
(1 euro = 1.95583 levs)