Last checked at 4 Sep 2018 07:41
4 September 2018
Animalcare Group plc
("Animalcare", the "Company" or the "Group")
Animalcare announces sale of its Wholesale Division
Animalcare Group plc (AIM:ANCR), the pan-European animal health business, today announces that it has completed the sale of Medini NV (the "Wholesale Division"), Animalcare's wholesaling company, to Vetdis Holding, a private company based in Belgium, (the "Transaction"), for a total consideration of up to approximately £2.65 million (€2.92million).
Animalcare has received an initial cash consideration of £0.33 million (€0.37 million) and expects to receive a further of £1.72 million (€1.90 million) shortly in respect of intercompany loan balances due from the Wholesale Division to other Animalcare group companies. A further £0.37 million (€0.40 million) is payable to Animalcare on 30 June 2019 in relation to the remaining intercompany balance owed. The balance of approximately £0.23 million (€0.25 million) is subject to achieving specific revenue targets between 1 July 2019 and 30 June 2020 and payable in July 2020.
Chris Cardon, Chief Executive Officer of Animalcare commented: "The sale of our Wholesale Division is consistent with our goal to focus on our higher-margin veterinary pharmaceuticals business. We believe that the consideration is a fair valuation for our wholesaling business and see Vetdis Holding as an ideal company to take the business forward. The sale of these assets is the optimal way to support long-term shareholder value creation, and to maximise the commercial, operational and financial synergies available to Animalcare, with the best interests of the Group and its stakeholders in mind."
The proceeds of the disposal will be used initially to improve the Group's debt position, but also provide further support for product development, both organically and through strategic acquisitions.
Financial summary of the Wholesale Division:
For the year ended 31 December 2017, the Wholesale Division generated turnover of £23.9 million and EBITDA of £0.3 million. As of 31 December 2017, the Wholesale Division had gross assets of £5.9 million and net assets of £3.8 million excluding intercompany debt due to Ecuphar NV.
Illustrative financial effects of the Sale:
On a pro-forma basis, i.e. excluding the Wholesale Division, for the year ended 31 December 2017, the continuing group ("Continuing Group"), comprising the Pharmaceuticals segment, would have recorded revenue of £68.0 million, EBITDA of £11.5 million and net assets of £85.8 million. This illustrative figure does not take into account the Wholesale Division's share of head office costs that will, going forward, be incurred solely by the Continuing Group.
The Group is expected to recognise an impairment loss including expenses in relation to the disposal of approximately £0.70 million during the year ending 31 December 2018 based on the total consideration of £2.65 million and unaudited net asset value of £3.35 million, excluding intercompany debt, as at 3rd September 2018.
This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014 (MAR).
For further information, please contact:
Animalcare Group plc | Tel: 01904 487 687 |
Chris Cardon, Chief Executive Officer | |
Panmure Gordon (Nominated Adviser & Broker) | Tel: 020 7886 2500 |
Corporate Finance | |
Freddy Crossley / Emma Earl | |
Corporate Broking | |
James Stearns | |
Consilium Strategic Communications | animalcare@consilium-comms.com |
Amber Fennell / Chris Welsh / Hendrik Thys |
About Animalcare (www.animalcaregroup.co.uk)
Animalcare Group plc is a UK AIM listed veterinary sales, marketing and product development company resulting from the merger of Animalcare and Ecuphar NV.
Post-merger Animalcare is a pan-European animal health company, with a broad geographic footprint. The Company now has direct sales in seven countries (UK, Belgium, Netherlands, Spain, Portugal, Italy and Germany) and exports to approximately 50 markets worldwide.
The enlarged Company has nearly 100 sales representatives and 28 agents operating across Europe and owns 50 licensed drugs, eight vaccines and over 100 care and nutraceutical products.
Animalcare invests in developing its own pharmaceutical products, seeks distribution partnerships and product acquisitions.
For more information see Animalcare Ltd (www.animalcare.co.uk) and Ecuphar NV (www.ecuphar.com).