United States-Animal health acquisition.
UNITED STATES-PHIBRO ANIMAL HEALTH CORPORATION COMPLETES ACQUISITION OF ABIC ANIMAL HEALTH
RIDGEFIELD PARK, New Jersey, 29 January 2009 - Phibro Animal Health Corporation (’PAHC’ or the ’Company’) today completed the acquisition of the Abic Animal Health business (’Abic’) from Teva Pharmaceutical Industries Ltd. (’Teva’), which was initially announced on 16 October 2008.
Abic is a manufacturer and marketer of over 60 animal health products, including vaccines, pharmaceuticals, antibiotics, parasiticides, disinfectants and antiseptics for the Israeli and international markets.
The acquisition was financed through a combination of new and existing credit facilities, including a $10 million term loan from BFI Co., LLC (’BFI’) to the Company.
The BFI term loan is payable in full at maturity on 1 August 2014 and bears interest, payable monthly, at the rate of 12% per annum. In connection with such loan, BFI has been issued a warrant to purchase 875,000 common shares of the Company at a price of $5.23 per share. The warrant is exercisable at any time at the holder’s option until it expires on 1 August 2014. The BFI term loan is subordinate to PAHC’s domestic senior credit facility and 10% Senior Notes, and ranks equal to PAHC’s 13% Senior Subordinated Notes.
BFI owns 70% of the outstanding common shares of the Company and Mr. Jack C. Bendheim, the Chairman and President of PAHC, is a managing member of BFI and has sole authority to vote the common shares of PAHC owned by BFI. The term loan, including the associated issuance of the warrant, is a related party transaction under Rule 13 of the AIM Rules for Companies. The directors of PAHC (without the participation of Mr. Jack C. Bendheim) consider, having consulted with its nominated adviser, Panmure Gordon (UK) Limited, that the terms of the BFI loan and warrant are fair and reasonable insofar as its shareholders are concerned.
ABOUT THE COMPANY
PAHC is a diversified global manufacturer and marketer of a broad range of animal health and nutrition products to the poultry, swine and cattle markets. PAHC is also a manufacturer and marketer of performance products for the ethanol, wood preservation and personal care industries. For more information, please visit www.pahc.com.
