Phibro Animal Health surges, tracking record daily gain on Zoetis portfolio buy

Phibro Animal Health

29/04/2024 17:27

** Shares of Phibro Animal Health  PAHC.O  up 27.2% a $16.17
on Mon after co struck deal to buy Zoetis Inc's  ZTS.N 
medicated feed additive portfolio for $350 mln
    ** PAHC's stock on course for biggest one-day pct gain ever,
hits highest level since Mar 8, 2023
    ** The agreement reached on Sun also involves some of ZTS's
water soluble products and six manufacturing sites across the
U.S., Italy and China, the firms said
    ** Acquired portfolio generated $400 mln in rev in 2023. On
a combined basis, PAHC sales in last 12 months would have been
approx $1.4 bln, according to the statement
    ** PAHC expects the deal, slated to close by end of 2024,
would boost its profitability and EBITDA margin, and to be
funded primarily with debt
    ** About 381K PAHC shares have changed hands so far on the
session compared to stock's 10-DMA volume of about 110K, per
LSEG
    ** Shares now up ~39% YTD
    ** ZTS's stock up 2.6% at $162.47 on Mon, trimming YTD loss
to ~18%

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))