LONDON, June 14 (Reuters Breakingviews) - Investors are being offered a hedge against plant-based diets. Livestock health company Huvepharma, which makes health and nutrition additives for cows, pigs and other animals, announced on Monday it will list in Amsterdam. A growing global population means the world livestock market is expected to expand by 5% a year to 2024, according to data group Vetnosis.
Huvepharma’s enzymes, food additives and vaccines produced EBITDA of 167 million euros in 2020 on sales of 588 million euros. If valued in line with London-listed Dechra Pharmaceuticals (DPH.L), which trades at 28 times trailing EBITDA, according to Refinitiv, Huvepharma’s enterprise value would be around 4.5 billion euros.
The offering will test the appetite of investors who have pushed up the valuations of plant-based food brands like newly-listed Oatly (OTLY.O) read more . Though more people are embracing vegan and vegetarian diets, Huvepharma reckons the impact on demand for food animal products will be limited. Shareholders have a choice. (By Dasha Afanasieva)
On Twitter http://twitter.com/breakingviews
Capital Calls - More concise insights on global finance:
Biden’s Big Corn battle read more
Paris insurance bust-up ends in humbling defeat read more
Sports retailer SPAC powers M&A cycle read more
Aussie food fight finish augurs more M&A battles read more
Japanese bank risk appetite rises late read more
Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.
Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.