Mumbai-based drug company SeQuent Scientific said Friday that its subsidiary Alivira Animal Health Ltd. (Alivira) has signed a definitive agreement to acquire 70 percent stake in Brazilian veterinary health company Interchange Indústria e Comércio de Produtos Veterinários S.A. Brazil (Interchange Brazil).

The company said it would foray into Brazil, world's third largest veterinary market, with this acquisition. Brazil accounts for 7.5 percent of the global animal health business. The veterinary market in Brazil is growing at 10.5 percent, estimated at $1.2 billion in 2015.

Alivira would invest $3.6 million to acquire 70 percent stake in Interchange Brazil, of which $2.2 million would be fresh infusion into the company to accelerate growth, SeQuent Scientific said in a Bombay Stock Exchange filing. The nature of the transactions would be cash, as per the filing.

The transaction, according to the company, is expected to close in the current quarter subject to customary closing conditions and approval of the competent courts in Brazil.

Interchange Brazil, operating under the trade-name Evance, is among Brazil's top 10 companies operating in the veterinary health space, with a focus on poultry and swine segments. The company registered sales of $5.8 million in 2015.

It was founded in 1995 and operates from a modern production plant, meeting the good manufacturing practices required by the ministry of agriculture in Brazil. The company has a portfolio of over 25 registered products consisting of antimicrobials, parasiticides, sanitisers and products for therapeutic support.

Manish Gupta, the managing director of Alivira, said the acquisition is aimed to pursue the vision of the company to build a global animal health business. "This provides us a foothold in the hugely attractive and fast growing Brazilian market. The transaction also allows us access to a strong, professional management team who will help us expand our footprint in the Latam markets," Gupta added.

Jose Nunes Filho, CEO, Interchange Brazil said the association with Alvira will give them access to low-cost raw materials.