Genus PLC Acquisition and strategic partnership (6110X)
23 February 2017 - 6:02PM
UK Regulatory
TIDMGNS
RNS Number : 6110X
Genus PLC
23 February 2017
For immediate release 23 February 2017
Genus plc
('Genus' or the 'Group')
Acquisition and Strategic Partnership
Genus acquires Hermitage's genetic assets and enters into a
strategic partnership
Genus, a leading global animal genetics company, and Hermitage,
one of the longest established pig breeding companies in Europe,
are pleased to announce that they have signed an agreement to enter
into a strategic partnership covering the supply of porcine
genetics in several markets.
PIC, Genus's porcine division, will acquire the genetic rights
and intellectual property of Hermitage. Hermitage will also become
a strategic supply chain and distribution partner for PIC. In
addition, PIC will acquire certain Hermitage customer relationships
in various geographies including Russia, the US and several
European countries. The transaction is subject to a number of
closing conditions which are expected to be fulfilled by the end of
March 2017.
The partnership combines PIC's genetics expertise and quality,
and Hermitage's supply chain network and operational excellence.
This combination will strengthen PIC's ability to deliver genetic
improvement in Europe and provide customers of both PIC and
Hermitage with access to top-tier genetics and optimal technical
and health services.
Hermitage was established in 1958 in Ireland and is one of the
longest established porcine breeding and genetics companies in
Europe. Over the years, Hermitage has grown into a multinational
porcine breeding company serving pig producers in Europe and other
international markets with high-health breeding stock. Hermitage's
infrastructure includes nucleus farms and boar studs in Ireland and
across Europe, as well as multiplication partners in key
international territories.
Commenting on the transaction, Karim Bitar, Chief Executive of
Genus, commented:
"The partnership with Hermitage is an ideal fit with our porcine
strategy. It will provide Genus with the opportunity to accelerate
genetic improvement by combining the PIC and Hermitage gene pools.
In addition, Hermitage's strong supply chain and customer-service
oriented team will strengthen our ability to serve pig producers
efficiently and reliably."
Ned Nolan, owner of Hermitage, added:
"This is an exciting step for Hermitage, as we join forces with
a global pioneer in our field. Our partnership with PIC will allow
the continued use of the Hermitage gene pool to provide enhanced
genetics to our global customer base. Hermitage shares PIC's values
of pioneering genetic improvement for customers and we look forward
to collaborating with PIC's team."
For further information, please contact:
Genus Tel: +44(0)1256 345970
Karim Bitar, Chief Executive
Stephen Wilson, Group Finance Director
Buchanan Tel: +44(0)207 466 5000
Charles Ryland /Vicky Hayns
This announcement is available on the Genus website
www.genusplc.com
About Genus
Genus creates advances to animal breeding and genetic
improvement by applying biotechnology and sells added value
products for livestock farming and food producers. Its technology
is applicable across all livestock species and is currently
commercialised by Genus in the dairy, beef and pork food production
sectors.
Genus's worldwide sales are made in seventy countries under the
trademarks "ABS" (dairy and beef cattle) and "PIC" (pigs) and
comprise semen and breeding animals with superior genetics to those
animals currently in production. Genus's customers' animals produce
offspring with greater production efficiency, and quality, and use
these to supply the global dairy and meat supply chain.
The Group's competitive edge has been created from the ownership
and control of proprietary lines of breeding animals, the
biotechnology used to improve them and its global supply chain,
technical service and sales and distribution network.
With headquarters in Basingstoke, United Kingdom, Genus
companies operate in thirty countries on six continents, with
research laboratories located in Madison, Wisconsin, USA.
About Hermitage
Hermitage was established in 1958 by the Nolan Family. Pedigree
Landrace and Large White lines were purchased internationally and
developed and selected with the support of Irish Government Central
Test Stations in the 60s, 70s and 80s. Over the last 30 years
Hermitage Genetics has expanded its Landrace, Large White, Duroc,
Pietrain and Maxgro lines, becoming a pig breeding company
dedicated to efficient and profitable pig production worldwide.
Hermitage top class production facilities support customers across
Europe, North America and Asia.
Hermitage has developed a science-based breeding program that
drives genetic progress focused on traits that are of economic
importance to the pig producer. Hermitage now tests over 30,000
pigs per year for lean efficient growth and collects data from more
than 22,000 pure-bred sows at the genetic nucleus level. This data
is analysed by Hermitage's proprietary BreedDirect BLUP software
program and offered by Hermitage to customers through an online
data portal. Hermitage Group was advised on the transaction by
Investec Corporate Finance in Dublin.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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