The parent company of Skipton-based Dales Pharmaceuticals Ltd has bought North Western Laboratories Ltd and its subsidiary Cambridge Specialist Laboratory Services.

Dechra Pharmaceuticals PLC, which has paid out £2.75 million in the deal, says it will boost group earnings. NWL, based in Poulton-le-Flyde, is the only veterinary laboratory with UKAS accreditation (United Kingdom Accreditation Service).

Around 80 per cent of its work is focused on the pet sector.

Cambridge Specialist Laboratory, which is based in Sawston, Cambridge, is the UK's leading endocrine specialist, dealing with hormonal and cellular issues. Both will continue to operate from their current locations, with directors, management and staff remaining in place.

For the year ending March 2001, NWL and Cambridge had audited sales of £1.569 million and operating profits of £177,000.

The deal is set to extend the range of services available to vets through Dechra's subsidiaries.

Dechra's chief executive Ian Page said: "Part of our strategy is to add higher margin specialist services to the group's portfolio - so we are delighted to be joining forces with the teams at NWL and Cambridge who are renowned for quality and innovation and have been successful in developing a loyal customer base."

Dales announced it is confident its £2.8 million investment programme will quadruple sales.

The company, which is the in-house manufacturing and development arm of Dechra, aims to take sales up to £20 million.

The firm, which employs 70 people, manufactures pharmaceuticals on behalf of third parties.

The operation has undergone extensive development which included acquiring an adjacent 27,500 sq ft facility on the Snaygill Industrial Estate which doubled its size to 57,000 sq. ft.