Animalcare Group PLC Animalcare announces sale of Wholesale Division (6810Z)

TIDMANCR

RNS Number : 6810Z

Animalcare Group PLC

04 September 2018

4 September 2018

Animalcare Group plc

("Animalcare", the "Company" or the "Group")

Animalcare announces sale of its Wholesale Division

Animalcare Group plc (AIM:ANCR), the pan-European animal health business, today announces that it has completed the sale of Medini NV (the "Wholesale Division"), Animalcare's wholesaling company, to Vetdis Holding, a private company based in Belgium, (the "Transaction"), for a total consideration of up to approximately GBP2.65 million (EUR2.92million).

Animalcare has received an initial cash consideration of GBP0.33 million (EUR0.37 million) and expects to receive a further of GBP1.72 million (EUR1.90 million) shortly in respect of intercompany loan balances due from the Wholesale Division to other Animalcare group companies. A further GBP0.37 million (EUR0.40 million) is payable to Animalcare on 30 June 2019 in relation to the remaining intercompany balance owed. The balance of approximately GBP0.23 million (EUR0.25 million) is subject to achieving specific revenue targets between 1 July 2019 and 30 June 2020 and payable in July 2020.

Chris Cardon, Chief Executive Officer of Animalcare commented: "The sale of our Wholesale Division is consistent with our goal to focus on our higher-margin veterinary pharmaceuticals business. We believe that the consideration is a fair valuation for our wholesaling business and see Vetdis Holding as an ideal company to take the business forward. The sale of these assets is the optimal way to support long-term shareholder value creation, and to maximise the commercial, operational and financial synergies available to Animalcare, with the best interests of the Group and its stakeholders in mind."

The proceeds of the disposal will be used initially to improve the Group's debt position, but also provide further support for product development, both organically and through strategic acquisitions.

Financial summary of the Wholesale Division:

For the year ended 31 December 2017, the Wholesale Division generated turnover of GBP23.9 million and EBITDA of GBP0.3 million. As of 31 December 2017, the Wholesale Division had gross assets of GBP5.9 million and net assets of GBP3.8 million excluding intercompany debt due to Ecuphar NV.

Illustrative financial effects of the Sale:

On a pro-forma basis, i.e. excluding the Wholesale Division, for the year ended 31 December 2017, the continuing group ("Continuing Group"), comprising the Pharmaceuticals segment, would have recorded revenue of GBP68.0 million, EBITDA of GBP11.5 million and net assets of GBP85.8 million. This illustrative figure does not take into account the Wholesale Division's share of head office costs that will, going forward, be incurred solely by the Continuing Group.

The Group is expected to recognise an impairment loss including expenses in relation to the disposal of approximately GBP0.70 million during the year ending 31 December 2018 based on the total consideration of GBP2.65 million and unaudited net asset value of GBP3.35 million, excluding intercompany debt, as at 3(rd) September 2018.

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014 (MAR).

For further information, please contact:

 
   Animalcare Group plc                      Tel: [phone] 
   Chris Cardon, Chief Executive Officer 
 
   Panmure Gordon (Nominated Adviser         Tel: [phone] 
    & Broker) 
   Corporate Finance 
   Freddy Crossley / Emma Earl 
   Corporate Broking 
   James Stearns 
 
   Consilium Strategic Communications        [e-mail] 
   Amber Fennell / Chris Welsh / Hendrik 
    Thys 
 

About Animalcare (www.animalcaregroup.co.uk)

Animalcare Group plc is a UK AIM listed veterinary sales, marketing and product development company resulting from the merger of Animalcare and Ecuphar NV.

Post-merger Animalcare is a pan-European animal health company, with a broad geographic footprint. The Company now has direct sales in seven countries (UK, Belgium, Netherlands, Spain, Portugal, Italy and Germany) and exports to approximately 50 markets worldwide.

The enlarged Company has nearly 100 sales representatives and 28 agents operating across Europe and owns 50 licensed drugs, eight vaccines and over 100 care and nutraceutical products.

Animalcare invests in developing its own pharmaceutical products, seeks distribution partnerships and product acquisitions.

For more information see Animalcare Ltd (www.animalcare.co.uk) and Ecuphar NV (www.ecuphar.com).

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

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September 04, 2018 02:41 ET (06:41 GMT)