EQT AB agreed to buy Dechra Pharmaceuticals Plc for about £4.46 billion ($5.6 billion), negotiating a lower price after the UK veterinary drugmaker made a profit warning in the middle of takeover talks.

Investors will get 3,875 pence for every Dechra share, EQT said in a statement Friday. That’s 4.8% lower than the bid price of 4,070 pence the companies were originally discussing. Bloomberg reported Thursday that the Swedish buyout firm and the UK company were likely to announce a deal Friday and EQT was seeking a lower price.

Shares in Dechra closed up 1% in London on Thursday at 3,374 pence, giving it a market value of £3.8 billion.

Dechra said in mid-April it was in talks with EQT about a possible, all-cash bid of 4,070 pence a share, or about £4.6 billion. The two sides had been discussing a possible price reduction, the people said, since Dechra warned on May 22 that underlying operating profit would be below a previous forecast due to a “more volatile and challenging” environment.

Deadline Extended

Dechra on May 11 extended the deadline to June 2 for EQT to announce a firm offer, in line with UK takeover rules. The private equity arm of the Abu Dhabi Investment Authority is set to be a co-investor in the deal, EQT has previously said.

The acquisition comes as private equity dealmaking has slowed amid a dearth of cheap funding for such transactions. Dechra is a global veterinary supplies company that is best known for making drugs for pets such as dogs, cats and rabbits. It also makes products for horses, cattle and pigs.

EQT is an acquisitive firm that has been active in the veterinary market. It’s the largest shareholder in IVC Evidensia, one of the biggest veterinary service providers in Europe. It also has invested in online retailer ZooPlus and pet insurer ManyPets.