Animalcare acquires Randlab for GBP62.2 million using new funds raised

(Alliance News) - Animalcare Group PLC on Tuesday said it had entered into a conditional ...

Alliance News 3 December, 2024 | 2:29PM
Email Form Facebook Twitter LinkedIn RSS

(Alliance News) - Animalcare Group PLC on Tuesday said it had entered into a conditional agreement to acquire Randlab Australia Pty Ltd for around GBP62.2 million in part using proceeds from fundraising announced today.

Animalcare is a York, England-based supplier of veterinary pharmaceutical products. It said Randlab is an Australian-based equine veterinary business.

The acquisition will be funded through Animalcare's existing cash resources, committed debt facilities and a new equity placing through an accelerated bookbuild process launched on Tuesday.

Animalcare raised GBP20 million before expenses through an oversubscribed placing and subscription. The company placed around 8.6 million shares at a price of 232.50 pence per placing share.

The share price represents a discount of 5.1% to Monday's last closing price of 245.00 pence.

The company said its largest shareholder, Alychlo NV, participated for 10% of the fundraise.

Animalcare said it expects the acquisition to be materially earnings accretive, by at least 20% in financial 2025.

Chief Executive Jenny Winter said: "We are delighted to have reached an agreement to acquire Randlab subject to completion of the transaction. This is a highly attractive opportunity to acquire a market-leading equine asset in Australia that is expected to deliver significant earnings accretion in 2025.

"This is a transformational deal that provides an excellent fit with our growth strategy and is complementary to our product portfolio...Not only will this acquisition significantly elevate the group's offering in a growing equine market, it will also open wider opportunities in a commercially and regulatorily aligned business environment," she said.

On the fundraise, Winter said: "We are delighted to announce today's successful fundraise of GBP20 million...The net proceeds of the fundraise will be used to part fund the acquisition of Randlab - a transformational deal that provides an excellent fit with our growth strategy and is complementary to our product portfolio."

Shares in Animalcare were down 0.7% to 243.25 pence in London on Tuesday afternoon.

By Michael Hennessey, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2024 Alliance News Ltd. All Rights Reserved.

Email Form Facebook Twitter LinkedIn RSS

Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Animalcare Group PLC 243.84 GBX 2.45 -

About Author

Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures