Phibro Animal Health Corporation announced an agreement to purchase the assets of MVP Laboratories, Inc., a privately held developer, manufacturer and marketer of livestock vaccines, vaccine adjuvants and other products based in Omaha, Nebraska.
Acquiring the MVP business strengthens Phibro’s core animal vaccine business and provides new opportunities in a fast-growing segment of the animal health industry. In addition to other products, MVP manufactures the MJPRRS® autogenous swine vaccine, which Phibro exclusively distributes pursuant to its agreement with MJ Biologics, Inc.
“A key part of our strategic plan is to grow our vaccine business and specifically to expand Phibro’s presence in the North American vaccine market through an expanded product offering and the acquisition of a U.S-based vaccine manufacturing facility,” said Larry Miller, Phibro’s President, Animal Health. “MVP’s expertise in autogenous vaccines coupled with its first-class diagnostic laboratory will enable Phibro to produce vaccines tailored to match disease strains for specific customers. Phibro will market herd-specific autogenous and conventional vaccines under the Phibro Animal Health brand.”
“Our business has great opportunities to grow as part of Phibro,” said Mary Lou Chapek, Chief Executive Officer of MVP. “Phibro has proven expertise in supporting livestock producers with high-quality products and technical support that help improve animal health, productivity and profitability. We believe that Phibro has the resources and capabilities necessary to maximize MVP’s strong production and development capabilities and to fuel development of our pipeline products. The value of this transaction is a testament to the highly skilled, innovative and hard-working people of MVP.”
In addition to its vaccine business, MVP is a global supplier of adjuvant systems for animal vaccines. MVP provides high-quality, ready-to-mix adjuvants that are free from animal origin components, including the EMULSIGEN®, CARBIGEN™ and POLYGEN™ platform systems, and also produces custom adjuvants for vaccine producers based on specific antigen and/or delivery requirements.
Subject to customary closing conditions, Phibro expects to complete the acquisition in January, 2016 and intends to draw on its existing credit facilities to finance the transaction. Phibro expects the transaction to be accretive to adjusted EBITDA and adjusted diluted EPS.