Pharmgate LLC announced Oct. 16 an agreement to acquire Pennfield Animal Health, which will establish Pharmgate as a key supplier of finished medicated feed additives and water-soluble products to the livestock and poultry markets in the U.S., Canada, Mexico and Latin America. The acquisition is expected to be completed before the end of 2014.
Pharmgate did not release financial details of the transaction.
Pharmgate will acquire Pennfield's current operations in Omaha, Neb., which includes office buildings, a manufacturing facility, warehouses and the entire manufacturing, laboratory, finance, customer service, sales and marketing workforce. This will significantly enhance Pharmgate's expanding product portfolio, which now includes the in-feed and water soluble Pennchlor, Pennox and combination products.
Pharmgate president Colin Gray said, "The deal provides an opportunity for Pharmgate to fast track our objective of establishing a North American presence. After introducing Pharmgate's branded chlortetracycline in the Canadian and Latin American markets, the chance to acquire a well-established and reputable product line in the U.S. permitted a rapid and sizable growth opportunity. We are excited that this acquisition, along with the seasoned and expert workforce, will drive and streamline our development pipeline projects.
"The acquisition provides a strong base from which to continue our growth in the medicated feed additive and water-soluble product sectors," Gray added.
Pharmgate is the majority-owned U.S. subsidiary of Jinhe Biotechnology Co. Ltd., a leader in the production of chlortetracycline feed grade, chlortetracycline hydrochloride, salinomycin and other animal health compounds. The company has marketing or supply approvals for these products in most major markets throughout the world.