The offer is expected to comprise a primary component of approximately EUR 300 million (US$358 million) and a secondary component that is still to be determined.
The Company intends to use the expected net proceeds of the issue of any new shares to fund and accelerate its growth capex and repay part of its outstanding debt in order to improve its leverage ratio, with a targeted leverage ratio below 1.5x at the end of 2021. The Admission will further provide the Company with access to capital markets, and further increase its profile internationally.
Huvepharma is one of the fastest-growing global livestock animal health companies (in terms of sales growth), with a focus on developing, manufacturing and marketing animal and human health and nutrition products. The global animal health market generated annual revenue of circa $33bn in 2019, of which circa $20bn, or 60 percent of the market, represents livestock animals. The Company is the sixth largest company by revenue in the livestock health industry (including livestock animal vaccine products), and the second largest by revenue in swine and poultry animal health (excluding vaccines). With more than half a century of expertise, the Company is dedicated to offering high quality products and services to help customers improve livestock animal health.
Based in the European Union and with main production sites in Italy, France, Bulgaria and the United States across a total of 13 locations, the Company is highly self-sufficient; more than 95 percent of its finished products are produced internally.
Over the last three years Huvepharma has consistently grown faster than the market in terms of sales growth. This resulted in revenues of €588m and an EBITDA of €167m with an EBITDA margin of 28.4 percent in 2020. For the three months ended March 31, 2021, the Group's revenue increased by 11.2 percent compared to the three months ended March 31, 2020, with all segments seeing positive growth. The revenue generated from sales to the rest of the world increased by 30.9 percent as customers shifted supply from Asia to Huvepharma during the pandemic.
The segment of livestock animals in which the Company operates (poultry, swine, cattle, sheep and aqua) is expected to grow at a CAGR of five percent for the years 2019 to 2024 (in nominal terms) according to Vetnosis - a faster rate than other animal health areas, such as companion animals, which is expected to have a CAGR of 2.5 percent over the same period (according to Vetnosis). The growth is mainly driven by three factors: an increase in the global population; a larger and growing middle-class in developing countries demanding more high-quality animal proteins; and increased food safety concerns and demand for higher quality standards resulting in increasing demand for better quality meat.
Though there is growing trend of vegan alternatives in developed markets, the Group expects that the impact of this trend on the overall mid to long-term demand for food animal products will be limited.
For more information visit the Huvepharma website, HERE.
Huvepharma is one of the fastest-growing global livestock animal health companies (in terms of sales growth), with a focus on developing, manufacturing and marketing animal and human health and nutrition products. The global animal health market generated annual revenue of circa $33bn in 2019, of which circa $20bn, or 60 percent of the market, represents livestock animals. The Company is the sixth largest company by revenue in the livestock health industry (including livestock animal vaccine products), and the second largest by revenue in swine and poultry animal health (excluding vaccines). With more than half a century of expertise, the Company is dedicated to offering high quality products and services to help customers improve livestock animal health.
Based in the European Union and with main production sites in Italy, France, Bulgaria and the United States across a total of 13 locations, the Company is highly self-sufficient; more than 95 percent of its finished products are produced internally.
Over the last three years Huvepharma has consistently grown faster than the market in terms of sales growth. This resulted in revenues of €588m and an EBITDA of €167m with an EBITDA margin of 28.4 percent in 2020. For the three months ended March 31, 2021, the Group's revenue increased by 11.2 percent compared to the three months ended March 31, 2020, with all segments seeing positive growth. The revenue generated from sales to the rest of the world increased by 30.9 percent as customers shifted supply from Asia to Huvepharma during the pandemic.
The segment of livestock animals in which the Company operates (poultry, swine, cattle, sheep and aqua) is expected to grow at a CAGR of five percent for the years 2019 to 2024 (in nominal terms) according to Vetnosis - a faster rate than other animal health areas, such as companion animals, which is expected to have a CAGR of 2.5 percent over the same period (according to Vetnosis). The growth is mainly driven by three factors: an increase in the global population; a larger and growing middle-class in developing countries demanding more high-quality animal proteins; and increased food safety concerns and demand for higher quality standards resulting in increasing demand for better quality meat.
Though there is growing trend of vegan alternatives in developed markets, the Group expects that the impact of this trend on the overall mid to long-term demand for food animal products will be limited.
For more information visit the Huvepharma website, HERE.
The Global Miller
This blog is maintained by The Global Miller staff and is supported by the magazine Milling and Grain
which is published by Perendale Publishers Limited.
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