SeQuent Scientfic is "lyked"

Seldom heard of company, SeQuent Scientific hit a record high today at Rs.889 though volumes remained muted at around 20,000 shares traded today, compared to 24,000 shares over two-week average.

The stock is at a new high after it announced that it plans to acquire the animal health business of Lyka Exports through its subsidiary, Alivira Animal Health. And Lyka Exports is the subsidiary of Lyka Labs.

The proposed acquisition of Lyka’s animal health business includes all IPRs, sales/marketing/distribution network with related employees, contracts, assets and liabilities. The company has stated that in FY15, Lyka’s animal health business registered a top line of close to Rs 23.50 crore with EBITDA margins in the range of 12%. The business is growing by over 30% during the ongoing financial year (FY16).

The combined organization will have over 250+ strong field force and a wider range of product portfolio. The acquisition would thus be accretive for SeQuent with immediate effect.

SeQuent has not disclosed the amount it paid for the acquisition but in a TV interview today morning said that  the consideration is not disclosed as there is an element of contingency consideration based on current year performance. But the management added that it would not put any debt burden on the books.