(AOF) – Virbac announces the acquisition of Globion, an Indian specialist in poultry vaccines. The animal health specialist believes that this transaction will strengthen its position as market leader in India by extending the existing portfolio of its local poultry subsidiary “to the growing avian vaccines segment”. The amount of the transaction was not specified. Globion was founded in 2005, as a joint venture between Suguna Group, one of India’s leading poultry conglomerates, and Lohmann Animal Health, a German poultry vaccine specialist.
“This acquisition illustrates Virbac’s 2030 vision and its ambition to develop through “programmatic” acquisitions by investing in vaccines, a key strategic axis of development, by strengthening our leading position in India, the country populated in the world and completing our portfolio targeting the dynamic and promising poultry market”, declares Sébastien Huron, general manager of the Virbac group.
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Key points
– Sixth in the world in animal health with 7% of the market;
– Turnover of €1.22 million, with 4 specialized sectors – pets, pigs, poultry & ruminants, aquaculture;
– Rise of international: 42% of revenues for Europe, ahead of emerging countries (33%), notably Chile, China and India then North America (13%);
– Business model based on 4 pillars: welfare of companion animals and veterinary services, positioning of the vaccine portfolio, success of R&D projects and external growth;
– Capital controlled by the founding Dick family (49.8% of the shares and 66.1% of the voting rights), Marie-Hélène Dick Madelpuech chairing the board of directors of 7 members and Sébastien Huron providing general management;
– Almost debt-free balance sheet with €857 million in equity.
Challenges
– Strategic plan 2030:
– commercial priorities for Virbac Busters, geographic expansion of key products, entry into new markets (petfood and farm animals in the USA, antiparasitics and petfood in China, etc.),
– 20% operating margin by 2025-2030 and R&D on turnover at 7%;
– Strategy for accelerating international development and improving competitiveness through the digitalization of systems and industrial production;
– Innovation strategy rich in + 9,000 patents and opening of a 9
th
R&D center, in Vietnam:
– based on 3 pillars – alternatives to antibiotics and traditional medicines, use of environmentally friendly technologies, and open innovation based on partnerships – universities, public research laboratories, biotechnology companies and start-ups;
– Environmental Strategy 2025:
– 4 major objectives: 50% reduction in the use of therapeutic trials on animals, 5% in energy consumption, 10% in carbon emissions, 5% in DCD (chemical oxygen demand) and 5% in volume of waste,
– reduction of packaging and use of water,
– “green” financing line;
– After strengthening positions in India, the group’s 3rd subsidiary, expected expansion in the United States and China (production and companion animals) and heavy industrial investments, particularly in Carros in France in vaccines and biotechnology platforms;
– Benefits of the acceleration of R&D to 8.5% of revenues and the increase in investments to €100 million, including €20 to €25 million in land in France.
Challenges
– Chile’s persistent underperformance, particularly in antiparasitic and antibiotic ranges, and limitations in the production capacity of vaccines for dogs and cats;
– Waiting for the exact measurement of the consequences of the cyberattack of June 2023;
– Regulatory delays in the construction of the Nîmes factory dedicated to pets;
– After stable half-year turnover, 2023 outlook lowered: increase in turnover of 0 to 4%, operating margin of 12 to 13%.
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