ZTS Zoetis Inc

Zoetis Inc. agreed to buy Pharmaq, a major maker of vaccines for farmed fish, for $765 million.

The acquisition would allow veterinary drug maker Zoetis to capitalize on increasing demand for farmed fish. Farmed fish account for about half of total fish consumption, up from 15% in 1990, the company said in a news release.

Pharmaq, which is majority owned by global investment firm Permira, generated roughly $80 million in revenue in 2014. The Oslo, Norway, company has about 200 employees. Pharmaq's late-stage development pipeline includes new vaccines and next-generation parasiticides expected to enter the Norwegian, Chilean and U.K. markets in the near term.

Zoetis, which was spun off by drug company Pfizer Inc. in 2013, is the world's leading seller of vaccines and medicines for livestock and household pets by sales.

After the deal closes, expected on or about Nov. 10, Pharmaq is expected to run largely as a stand-alone operation within Zoetis. The transaction is expected to add to Zoetis's earnings in 2017.

During August, Zoetis reported that it swung to a second-quarter loss on costs related to its restructuring plans, though revenue and adjusted profit topped expectations as sales of its pet and livestock medicines grew.

The Florham Park, N.J., company is expected to provide more details about the planned acquisition during its third-quarter earnings conference call on Tuesday.

Write to Tess Stynes at tess.stynes@wsj.com

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(END) Dow Jones Newswires

November 02, 2015 19:55 ET (00:55 GMT)

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