French animal health company Virbac (Euronext Paris:VIRP) announced on Wednesday a definitive agreement with Japan's ORIX Corporation (TYO:8591) to acquire its animal health subsidiary Sasaeah for approximately EUR280m.

Sasaeah, a result of the merger between Fujita Pharmaceutical Co Ltd and Kyoto Biken Laboratories Inc, under the stewardship of ORIX, generates annual revenues of around EUR75m, of which half is from vaccines. With a strong market position in Japan, Sasaeah offers a wide range of veterinary products for both farm and companion animals.

This acquisition positions Virbac as a leader in the Japanese farm animal vaccines market, especially in cattle, and expands its pharmaceutical portfolio across species. Virbac gains access to Sasaeah's manufacturing facilities in Japan and Vietnam, along with its R&D capabilities and a workforce of over 500 employees.

Virbac's CEO, Sébastien Huron, views Japan as a crucial market and sees this acquisition as aligned with the company's 2030 vision, focusing on geographic expansion, vaccine segment growth and reinforcement of its key species.

Slated for completion by early April 2024, the transaction does not require regulatory approval.