The groups in a statement said they “have reached an agreement on the terms and conditions of a recommended cash acquisition”.

The announcement sent Dechra’s share price soaring 8% to £36.44 in early deals on London’s rising stock market.

The offer was pitched at £38.75 per share – a 44% premium from April 12 – before Dechra first revealed it was holding bid talks.

Dechra is a “leading company operating in the attractive animal health pharmaceuticals market”, the statement noted.

The sector is “expected to benefit from numerous long-term growth drivers including… increasing pet ownership (and) medical innovation”, it added.

Under the terms of the deal, EQT will own 74% of Dechra, and the Abu Dhabi sovereign wealth fund the remainder.

The acquisition is expected to complete by early 2024, subject to approvals.

Dechra Pharmaceuticals has more than 2,000 employees and seven production sites across the world and sells veterinary products in 63 countries.