YORK, UK - In a move to strengthen its position in the equine health market, Animalcare Group Plc (AIM: ANCR) has announced the conditional acquisition of Randlab, a prominent Australian equine veterinary business. The deal, valued at A$120 million (approximately £62.2 million), is expected to significantly boost Animalcare's earnings in 2025.
The purchase agreement, involving Animalcare's newly formed subsidiary Animalcare Australia Pty Ltd, encompasses Randlab's entire issued share capital, including its New Zealand and Middle Eastern operations. The acquisition is financed through a combination of the company's cash reserves, committed debt facilities, and an equity placing.
Randlab, known for its extensive portfolio of equine brands, has shown a strong financial performance with a three-year compound annual growth rate (CAGR) of 13%. In the fiscal year 2024, it reported revenues of A$22.9 million and an EBITDA of A$11.0 million, boasting an impressive EBITDA margin of 48%.
This acquisition aligns with Animalcare's long-term growth strategy, potentially elevating its sales in the equine sector to over 20% of group sales on a pro forma basis. The transaction is set to close in early January 2025, subject to customary conditions.
Jenny Winter, CEO of Animalcare, expressed enthusiasm for the acquisition, highlighting Randlab's established business and the potential for substantial earnings growth. She also emphasized the strategic fit with Animalcare's growth objectives and product portfolio.
Angelo Vasili, CEO/Managing Director of Randlab, remarked on the importance of finding a passionate successor to continue serving their equine veterinarian customers. He expressed confidence in Animalcare's ability to further Randlab's mission and thanked his team for their contributions to the company's success.
Animalcare's full-year outlook remains unchanged from its interim results announced on September 24, 2024.
The information in this article is based on a press release statement.
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