Domuschievi to acquire the minority stake in Huvepharma, Biovet’s majority shareholder (NEUTRAL)

Kiril and Georgi Domuschievi will acquire the 36.6% stake of Rohatyn Group in Huvepharma, the majority shareholder of Biovet, according to information by Standard & Poor's Ratings Services. The deal will be paid through Huvepharma's proposed €275m senior secured credit facilities. Ronathyn Group acquired the stake in Huvepharma in 2013 when acquired Citi Venture Capital International (CVCI). CVCI paid €75m for the stake back in 2010. S&P expects further increase in the group's EBITDA margin to 24%-26% in the next three years, from about 23% in 2013 and a strong rise in revenues of 15%-25%, due to significant organic growth from the introduction of new products. After the deal the debt to EBITDA is expected to exceed 4x in 2014 and to decrease to about 3.5x in 2015 and to 3x in 2016.