Last checked at 20 Sep 2010 07:00
Animalcare Group plc
Disposal of the Agricultural businesses for £3.25m cash
Focus on core veterinary medicines business
Animalcare Group plc ("the Group" or "Animalcare"), a leading supplier of veterinary medicines and other products to the veterinary and agricultural markets, is pleased to announce that it has completed the sale of the entire issued share capital of Fearing International (Stock Aids) Limited ("Fearing") and the business and assets of Ritchey Limited (together "the Agricultural businesses") for an aggregate cash consideration of approximately £3.25 million ("the Disposal") to Tru-Test UK Limited a wholly owned subsidiary of Tru-Test Limited a New Zealand based agricultural technology company. The sale includes the sale of all assets of the businesses including the working capital. The final amount to be received is subject to the preparation of completion accounts to settlement date.
In the 'Pre-close Trading Update' released on 13 July 2010, the Group announced it was reviewing the strategic direction of the Agricultural businesses. Following this review, the Board believes the Disposal will allow the Group to focus all its attention on its core Animalcare veterinary medicines business.
The Agricultural businesses focus on the supply of livestock identification and welfare products to agricultural retailers and farmers in the United Kingdom and the Republic of Ireland.
At 30 June 2009, the Agricultural businesses comprised net assets of £4.83 million including fixed assets of £1.08 million and stock of £0.85 million. In the 12 months to 30 June 2009, the Agricultural businesses contributed approximately £0.57 million of operating profit before impairment of goodwill and tax on revenues of £7.12 million. The service contracts of all employees of the current Agricultural businesses will transfer on completion of the Disposal.
Following completion of the Disposal, the Group intends to consider over the next few weeks the most appropriate use of the proceeds of this sale.
The Group is also finalising the strategic review of its loss making Travik Chemicals business and expects to make another announcement in due course.
James Lambert, Chairman of Animalcare Group plc, commented: "With approximately 80% of Group profits being generated from the Animalcare veterinary medicines and supplies business the Board has decided on focusing all its resources on optimising the growth of the veterinary business."
For further information, please contact:
| Animalcare Group plc |
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| Stephen Wildridge (Chief Executive) | 01904 487 601 |
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| Brewin Dolphin (NOMAD) |
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| Neil Baldwin | 0845 213 4726 |
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| Walbrook PR Ltd | 020 7933 8787 |
| Paul McManus | 07980 541 893 |
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| paul.mcmanus@walbrookpr.com |