ANIMALCARE GROUP PLC
(the "Company" or the
"Group")
Disposal of Identicare
Ltd
Material value creation for shareholders
from non-core asset
28 February
2024. Animalcare Group plc, the international
animal health business, announces that it has disposed of its
majority shareholding in Identicare Ltd ("Identicare") to BG Bidco
21 Limited, a newly incorporated company owned by funds managed by
Bridgepoint Advisors II Limited, for a cash consideration of £24.9m
(the "Consideration") payable upon completion of this sale. This
represents a significant crystallisation of value for the Company
and its shareholders from a non-core asset and allows the Company
to focus on growth in its pharmaceutical-based animal health
market.
Identicare is a UK-based pet microchipping and
pet owner-focused services company. As part of the Group's strategy
to focus on pharmaceuticals and to drive growth through launching
innovative products, Identicare was separated from the UK
pharmaceuticals business within Animalcare Ltd in March 2021, with
specialist leadership brought in. The decisions taken by the
Company to instil new leadership and with this, a strategic
repositioning of the business to make it attractive to specialist
investors has enabled Animalcare to today crystallise the value of
its investment in Identicare.
Upon receipt of the Consideration and after fees
associated with the transaction, the Company's net cash is expected
to be around £27.0m.
The disposal of Identicare
significantly strengthens the balance sheet of the Group and
enables us to accelerate our organic and inorganic growth
initiatives and deliver long-term value creation for
shareholders. We continue to
see a large number of opportunities and this transaction increases
our confidence in being able to execute on that
pipeline.
The Company expects to announce its preliminary
unaudited results on 9 April 2024 and will announce further updates
to its business development and capital allocation strategies at
that time.
As of 31 December 2023, Identicare had net
liabilities of approximately £6.9m and for the 12 months to 31
December 2023, an EBITDA* of approximately £1.7m and profit before
tax of approximately £0.1m.
Jenny Winter,
Chief Executive Officer commented: "I'm very
proud to see what we have achieved with Identicare in recent years.
Today's decision to crystallise the value from the sale is the
logical next step, significantly strengthening our balance sheet
and giving us additional financial flexibility and firepower as we
concentrate on growing our pharmaceutical-focused animal health
business."
Notes
Identicare
financials are taken from December management accounts and are
unaudited.
* EBITDA is
defined as earnings before interest, tax, depreciation,
amortisation, exceptional items and share based
payments.
About
Animalcare
Animalcare Group plc is a UK
AIM-listed international veterinary sales and marketing
organisation. Animalcare operates in seven countries and exports to
approximately 40 countries in Europe and worldwide. The Group is
focused on bringing new and innovative products to market through
its own development pipeline, partnerships and via
acquisition.
For more information about Animalcare, please
visit www.animalcaregroup.com or
contact:
Animalcare Group plc
Jenny Winter, Chief Executive
Officer
Chris Brewster, Chief Financial
Officer
Media/investor relations
|
+44 (0)1904 487 687
communications@animalcaregroup.com
|
Stifel Nicolaus
Europe Limited
(Nominated Adviser & Joint Broker)
Ben Maddison
Nicholas Harland
Francis North
|
+44 (0)20 7710 7600
|
Panmure
Gordon
(Joint Broker)
Corporate
Finance
Freddy Crossley/Emma Earl
Corporate
Broking
Rupert Dearden
|
+44 (0)20 7886 2500
|