Genus PLC Acquisition and strategic partnership (6110X)

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: [phone]

Karim Bitar, Chief Executive

Stephen Wilson, Group Finance Director

Buchanan Tel: [phone]

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

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February 23, 2017 02:02 ET (07:02 GMT)