Dechra Pharmaceuticals has acquired a drug developer for $200m (£139m), part-funded by a £47.1m share issue, in a deal that significantly strengthens its position in the US.

The Northwich-headquartered veterinary pharmaceutical business has announced the conditional acquisition of Putney, a Maine-based developer of generic companion animal pharmaceuticals. The £139m consideration is payable in cash on completion.

The proposed acquisition is being funded through available cash, an extension to its existing credit facility, and a new placing of 4.4m million shares raising approximately £47.1m net of expenses.

Dechra told investors that Putney was the most complementary US acquisition opportunity identified, strengthens its pipeline for the US and gives it more critical mass in the world's largest companion animal market. The transaction also accelerates Dechra's North American strategy, the company said.

Ian Page, chief executive of Dechra, said: "In line with our strategy, the acquisition of Putney will significantly strengthen Dechra's position in the US, provide high-quality FDA-approved veterinary products and broaden our pipeline.

"We are delighted to secure this unique opportunity which adds scale and additional expertise to our North American business."

Dechra was formed by a management buyout from Lloyds Chemist in June 1997.

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