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30 Mar 2012 07:00
Anpario plc ("Anpario", the "Company" or the "Group")
Acquisition of Meriden Animal Health Limited
Highlights
Acquisition of Meriden Animal Health Limited ("Meriden") for up to £4.125 million Meriden's 2011 sales and adjusted profit before interest and tax were £5.35 million and £740,000 respectively Expected to be immediately earnings enhancing Deal increases Anpario's global market share and significantly strengthens its position in China Consideration to be met from the Company's existing cash resourcesAnpario plc, one of the leading suppliers of natural high performance feed additives to enhance health, growth and sustainability in global agriculture and aquaculture markets, is pleased to announce the acquisition of Meriden Animal Health Limited for a total consideration of up to £4.125 million.
The acquisition of Meriden brings another strong trading brand to the Anpario Group, broadening its product technology and increasing Anpario's global market share in the feed additive sector.
Meriden based in Bedfordshire in the United Kingdom, supplies the global agriculture and aquaculture markets with natural animal feed additive products. Meriden's Orego-Stim range of products, using essential oils, is the leading brand in its field and is marketed across 60 countries worldwide, with the majority of sales being outside the United Kingdom
Meriden's sales for the 12 months to December 2011 were £5.35 million and adjusted profit before interest and tax was £740,000. Net assets acquired will be at least £1.644 million, the majority being working capital, including cash in excess of £400,000. The acquisition is expected to be immediately earnings enhancing to the Group as a whole.
Meriden has ten full time staff including a technical support team based in a representative office in Malaysia. The majority of production is outsourced to a third party manufacturer based in the United Kingdom. Meriden typically supplies through distributors in the local territories except Australia where the company has a joint venture company.
Meriden has a close and important partnership with its China operation with sales accounting for 26% of Meriden's total sales during 2011. The China business has been growing well and Anpario intends to give further support to this relationship to capitalise on the vast potential of China's agriculture market.
In line with Anpario's strategy, Meriden will be run as a separate business enabling the team to focus on selling and marketing high quality feed additive products around the world. Joining Anpario means Meriden's management team will gain additional support and can benefit from working together with Anpario's research and development resource to develop new and innovative products for sale under the Meriden brand.
The two shareholders and founders, namely, Stephen Harris, Managing Director, and Pamela McLaren, Company Secretary, are to remain with the business in their existing roles and will continue to develop the Meriden business further.
The price payable for Meriden is on a debt free basis but will include estimated excess cash of £400,000. An initial payment of £3.0 million in cash on completion has been made from existing cash resources. The remaining £1.125 million is payable over the next two years, dependent on Meriden achieving certain performance criteria, and of this, £125,000 is to be satisfied by the issue of ordinary shares of Anpario to Meriden's shareholders. Subsequent to the completion of this acquisition, Anpario's cash balances will be in excess of £2.5 million.
The Company expects to announce its results for the year ended 31 December 2011 on 26 April 2012.
Richard Edwards, Executive Vice Chairman of Anpario, commented:
"Meriden Animal Health is a quality business with strong brand recognition for developing 100% natural feed additives. This acquisition increases our global market share in animal feed additives which is benefiting as the agriculture industry looks to use natural based solutions to promote the health and growth of animals for meat consumption.
Meriden's significant presence in China increases our involvement in the world's biggest producer of poultry and pig meat and reinforces our strategy to build more significant positions in emerging agriculture and aquaculture markets. We are delighted to welcome the Meriden team and very much look forward to working with them in achieving continued success with the business."
Enquiries:
Anpario plcRichard Edwards, Executive Vice Chairman +44 (0)7776 417129Karen Prior, Group Finance Director +44 (0)1909 537380
FinnCap +44 (0)20 7600 1658Matthew Robinson / Henrik Persson - Corporate FinanceStephen Norcross - Corporate Broking
Copyright Business Wire 2012
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