ZTS - Phibro Animal Health: An Interesting Deal With Zoetis For A Struggling Business
2024-05-01 16:36:45 ET
Summary
- Phibro Animal Health has seen lackluster performance over the past decade, seeing modest sales growth and declining margins.
- The company recently announced a significant deal with Zoetis, acquiring their medicated feed additive product portfolio for $350 million.
- The deal is expected to contribute $400 million in sales and be accretive to adjusted earnings, but more details are needed to fully evaluate its impact.
- While the deal looks compelling, it is the lack of organic performance by Phibro itself which raises the bar here to get excited.
It has been a very long time since I last covered shares of Phibro Animal Health Corporation ( PAHC ). In fact, it was 2015 when I believed that the valuation had become full as investors aggressively priced in improvements in the operational performance....
Phibro Animal Health: An Interesting Deal With Zoetis For A Struggling Business