2021/07/02 - Financial public releases
Virbac completes divestment of the industrial site located in Magny-en-Vexin (Paris) to Friulchem
Virbac, today announced the successful completion of its divestment of the production plant located in Magny-en-Vexin to FC France SAS, a subsidiary of Friulchem SpA and Finest SpA.
Virbac has divested the Magny-en-Vexin industrial site to Friulchem, a CMO (Contract manufacturing organization) partner of Virbac for more than twenty years and specialized among others in the production of antibiotics. Following the decline in demand in recent years, as a result of regulations aiming at limiting the use of antibiotics in industrial livestock, and thus for the type of products manufactured in Magny-en-Vexin, this option will preserve the employment, the competitiveness of the site and the products.
As part of the 2030 vision, which focuses on growing faster than the market and higher value-added activities, we have chosen the most suitable option for the site and job preservation, namely the divestiture of the Magny-en-Vexin site and activity to the CMO Friulchem. This transfer is part of a long-term vision with a ten-year agreement that can be extended. Friulchem will be able to repatriate other products to the Magny site and manufacture other products on behalf of third parties, to generate a better absorption of the fixed costs of the plant from which Virbac will benefit.
The objective of this transfer is above all to ensure the sustainability of the site, jobs and production, ensuring the long-term competitiveness of the products to continue to serve our customers, while reducing the complexity of our overall manufacturing footprint. We would like to thank all the employees of Magny-en-Vexin for their professionalism and commitment during this transition period.
The impact of the divestment in our accounts will be limited, the consideration received being around the net book value.