Animalcare Group PLC Animalcare announces sale of Wholesale Division (6810Z)
04 September 2018 - 4:41PM
UK Regulatory
TIDMANCR
RNS Number : 6810Z
Animalcare Group PLC
04 September 2018
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
GBP2.65 million (EUR2.92million).
Animalcare has received an initial cash consideration of GBP0.33
million (EUR0.37 million) and expects to receive a further of
GBP1.72 million (EUR1.90 million) shortly in respect of
intercompany loan balances due from the Wholesale Division to other
Animalcare group companies. A further GBP0.37 million (EUR0.40
million) is payable to Animalcare on 30 June 2019 in relation to
the remaining intercompany balance owed. The balance of
approximately GBP0.23 million (EUR0.25 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 GBP23.9 million and EBITDA of GBP0.3 million.
As of 31 December 2017, the Wholesale Division had gross assets of
GBP5.9 million and net assets of GBP3.8 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 GBP68.0 million, EBITDA of GBP11.5 million and
net assets of GBP85.8 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 GBP0.70
million during the year ending 31 December 2018 based on the total
consideration of GBP2.65 million and unaudited net asset value of
GBP3.35 million, excluding intercompany debt, as at 3(rd) 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 Tel: 020 7886 2500
& Broker)
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).
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END
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