Business briefs: MWI, Pfizer working on big deals to start 2013
One animal health company kicked off 2013 by announcing a noteworthy business acquisition, while a pharmaceutical giant is reportedly preparing for a much-anticipated initial public offering.
Keep reading for details about business news involving MWI Veterinary Supply Inc. and Pfizer.
MWI pays $17 million for Prescription Containers Inc. assets
MWI Veterinary Supply Inc. announced on Jan. 1 that it had acquired the assets of Prescription Containers Inc. (PCI Animal Health) for about $17 million.
New Jersey-based PCI Animal Health, which distributes companion animal health products mainly in the Northeastern United States, brought in approximately $33 million in revenue during 2012, according to an MWI news release. The company supplies products including vaccines, pharmaceuticals, and supplements to more than 2,000 veterinary practices.
According to the news release, MWI will face expenses related to the acquisition as well as integration costs, but the deal should become “slightly accretive" in the fiscal year ending Sept. 30, 2013.
Pfizer likely to spin off animal health division in early 2013
Pfizer is preparing to spin off its animal health division - named Zoetis - with a $4 billion initial public offering, according to Marketplace.org.
The initial public offering is an alternative to Pfizer’s original plan to sell Zoetis. According to a recent Chicago Tribune article, Zoetis - which may be worth as much as $20 billion - has become too financially valuable for any would-be buyers to purchase it.
Pfizer's expected stock offering comes at a time when business is booming for animal pharmaceutical companies because consumers are spending heavily on companion animal drugs, and the food animal industry is spending more on medicine for livestock and poultry.
The IPO is expected to occur in January or February, the Tribune reported.