Animalcare to gobble up Ecuphar
Animalcare Group
237.00p
16:50 18/11/24
Generic veterinary medicines and identification products and services supplier Animalcare Group announced on Friday that it had entered into a conditional share purchase agreement to acquire the entire issued share capital of Ecuphar.
FTSE AIM All-Share
727.55
16:50 18/11/24
Pharmaceuticals & Biotechnology
19,204.40
17:09 18/11/24
The AIM-traded firm described Ecuphar as a European animal health company focused on the development and sale of veterinary pharmaceutical products that provide “significant benefits” to animal health in the companion animal, equine and production animal markets.
It said the consideration for the acquisition was structured on a consolidated Animalcare/Ecuphar enlarged issued share capital ratio of 37:63 - after taking into account dilution from certain Animalcare incentive arrangements - and would be satisfied through the issue of consideration shares and cash to the Ecuphar vendors.
The cash component of the consideration would be satisfied in part through a placing of approximately 8.6 million new placing shares - representing approximately 40.4% of the existing issued share capital - to raise gross proceeds of not less than £30.0m, with the balance of £4.0m to be funded by existing cash held by the group.
Animalcare said the number of consideration shares to be issued to the vendors of Ecuphar would be determined following completion of the placing, and by reference to the exact number of new placing shares issued in the placing.
The acquisition constitutes a reverse takeover for the purposes of Rule 14 of the AIM Rules for Companies and, as such, was conditional upon shareholder approval.
“We are very pleased to present to shareholders this highly complementary acquisition which will provide enhanced scale and capabilities for the group and create a pan-European animal health platform from which to accelerate growth,” said Animalcare CEO Iain Menneer.
“The acquisition will be truly transformational: it will expand our direct sales operation to cover seven countries and our international reach into 50 export markets, as well as greatly increasing the depth and diversity of our licensed veterinary medicines product range.
“As an enlarged group we expect to deliver a growing, highly cash generative, dividend paying company with a solid pipeline of new products and multiple cross-selling opportunities.”