MALMÖ, SWEDEN — Swedencare AB has acquired US-based Vetio, a contract manufacturer specializing in pharmaceutical and nutraceutical dermatology and liquid supplement products for companion animals.
The transaction was valued at approximately $181.5 million USD, of which cash representing $179 million and in-kind shares accounting for $2.3 million. It is expected to strengthen Swedencare’s manufacturing and product development capabilities in the United States and Canada.
“Through the acquisition of Vetio, by far our largest to date, we take a big leap towards our goal to become the leading global animal health group within nutraceutical and dermatology premium products to pets and companion horses,” said Håkan Lagerberg, chief executive officer of Swedencare. “…Together with Vetio and their excellent management we create a stronger and wider product offering together with significantly scaling up our presence in North America and receives a business relationship with many new interesting customers. Vetio has grown fast and accelerates further with the expansion and inauguration of the new production facility this fall in Florida.”
Lagerberg also shared the company will expand in-house production for its own brands and its white label brand partners, specifically in the soft chew pet products and its proprietary palatant portfolio.
”Swedencare’s acquisition of our company validates the vision for Vetio and what we have built,” said John Kane, chief executive officer of Vetio, who will continue to lead the company following the acquisition by Swedencare. “Vetio’s reputation as a leading CDMO [contract development and manufacturing organization] in animal health is based on the hard work and our mission to actualizing animal health, a mission that aligns well with Swedencare. We are committed to the development and manufacturing of products that improve the lives of animals, while assuring the safety, quality, and compliance of our products to the highest industry standards, a commitment that we are eager to realize together with Swedencare.”
Vetio’s 2020 full-year sales totaled $32.3 million, according to Swedencare. The contract manufacturer upgraded its FDA-compliant Montreal facility roughly two years ago and is in the final stages of another facility expansion in Jupiter, Fla., according to Swedencare. The Florida plant expansion will add new manufacturing capabilities for nutritional supplements.
Before the acquisition, Vetio was majority-owned by Thompson Street Capital Partners (TSCP).
“Vetio has been a ‘buy and build’ platform for TSCP,” said Matt Scherrer, managing director at TSCP. “Via two acquisitions and a close partnership with a talented management team led by John [Kane], Vetio has become a significant player in animal health drug development and manufacturing. We are very pleased to see Vetio partner with Swedencare and realize the strategic initiatives that have been effected by Vetio and TSCP.”
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