Acquisition of Animax Limited Carr's Group bolsters its position in animal health with key acquisition
21 September 2018
21 September 2018: Carr's (CARR.L), the Agriculture and Engineering Group, announces the acquisition of the entire issued share capital of Animax Limited ("Animax"), a producer of market-leading animal health products, for a total cash consideration of up to £8.5m.
Animax, based in Suffolk in the UK, was established in 1982. The business specialises in the research, development and manufacture of highly effective animal health products. Animax is at the forefront of innovation in the field of livestock trace element supplementation. Its patent-protected leaching boluses, currently sold in the UK and overseas under the Tracesure® and Allsure® brands, are specifically designed to deliver health benefits to livestock consistently over prolonged periods.
Animax also produces other leading animal health and trace element supplementation products sold under well-known brands including Copasure®, Copinox®, Coprac®, Easycal®, Pardevit® and Paracide®.
Highlights and strategic rationale of the acquisition:
The acquisition of Animax aligns with the Group's stated strategy of investing in growing agriculture markets in the UK and internationally.
In particular, Animax and its product ranges:
- enhance the Group's position in the global animal health and livestock supplementation markets;
- bring innovation and patent-protected technology to the Group together with a number of recognised and highly respected brands;
- are highly complementary to, and will benefit from clear synergies with, the established Carr's Group feed block business across the USA, NZ, Europe, UK and Ireland; and
- broaden the Group's animal health and supplementation product ranges which bring added value to farmers.
Carr's will support the growth and development of Animax through investment in research to develop new products and by investing in manufacturing efficiencies. In addition, Carr's expects significant manufacturing, distribution and sales synergy benefits to be realised as a result of the acquisition.
As part of the acquisition, Carr's has also acquired the entire issued share capital of Animax's related party, Clinimax Limited ("Clinimax"). Clinimax is a manufacturer of specialist disinfectant products for use in the medical industry and which also carry the benefit of patent-protection.
Both businesses are being acquired for an initial cash consideration of £6m, with an additional cash consideration of up to a maximum of £2.5m payable over the period to November 2020, based on the achievement of agreed financial targets.
For the year ended 30 November 2017, Animax and Clinimax in aggregate recorded EBITDA of £0.6m and profit before tax of £0.3m. The combined gross assets of Animax and Clinimax as at 30 November 2017 totalled £5.6m, including cash of £1.2m. The acquisition is expected to be earnings enhancing in the first full year of ownership. The total consideration is being satisfied by the Group's existing facilities.
Tim Davies, Chief Executive, commented:
"We are delighted to announce the acquisition of Animax. This acquisition is in line with our stated strategy of developing our offering in the growing livestock specialist nutrition market both in the UK and internationally. Animax is highly complementary to our global feed block business and will add value to our customers' businesses. Animax has a history of developing market leading products based on sound research with their brands being recognised for their efficacy and performance. The combination of Carr's resources, knowledge and distribution, together with the Animax research capability, product technology and history of innovation, make a compelling case for this strategic step for the Group."
|Carr's Group plc
Tim Davies (Chief Executive)
Neil Austin (Group Finance Director)
|Tel: +44 (0) 1228 554 600
Nick Dibden / Lisa Kavanagh / Sam Austrums
|Tel: +44 (0) 20 7250 1446
About Carr's Group plc:
Carr's is an international leader in manufacturing value added products and solutions, with market leading brands and robust market positions in Agriculture and Engineering, supplying customers in over 50 countries around the world.
Its Agriculture division manufactures and supplies feed blocks and supplementation products for livestock, distributes farm machinery and runs a UK network of rural stores, providing a one-stop shop for the farming community. Its Engineering division designs and manufactures bespoke equipment and provides technical engineering services into the nuclear, petrochemical, oil and gas, pharmaceutical, process and renewable energy industries, including robotic and remote handling equipment.