Pfizer Animal Health agreed to acquire Embrex for an aggregate equity purchase price of approximately $155 million. The two companies expect to complete the acquisition in the first quarter of 2007. "This acquisition represents an excellent opportunity to leverage Embrex' innovative technologies and for Pfizer to reenter the poultry business," comments Juan Ramon Alaix, president, Pfizer Animal Health.
Pfizer points out that since it sold its feed-additive business in 2000, the company has not truly served the poultry market. This acquisition will give Pfizer an opening into Embrex’ Inovoject® system, which is used to vaccinate more than 80% of the poultry raised in North America against Marek's disease. Embrex is also active in developing new poultry vaccines and vaccine-delivery technologies. "Biologicals are a rapidly growing segment of Pfizer Animal Health's overall sales," Alaix added. "We are excited by the chance to dedicate a portion of our research investment to discover and develop new vaccines that will address unmet needs of poultry producers and their birds."
Embrex’ revenues in 2005 grew by 8% from its revenues in 2004 to $52.5 million. Sales outside the U.S. accounted for 37% of total revenues.
Under the terms of the agreement, Pfizer will acquire through a merger 100% of the equity of Embrex for $17 per share in cash, making Embrex a wholly owned subsidiary of Pfizer. This represents a 42.61% premium over its close, the day before the acquisition announcement of $11.92. Embrex opened today at $16.51.