Business
Animalcare announces sale of Wholesale Division
Animalcare announces sale of Wholesale Division.
About this update from Animalcare Group Plc
[{"type":"text","content":"\n \nRNS Number : 6810Z Animalcare Group PLC 04 September 2018 \n\n \n4 September 2018\n \nAnimalcare Group plc\n \n(\"Animalcare\", the \"Company\" or the \"Group\")\n \nAnimalcare announces sale of its Wholesale Division \n \nAnimalcare 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 £2.65 million (€2.92million).\nAnimalcare has received an initial cash consideration of £0.33 million (€0.37 million) and expects to receive a further of £1.72 million (€1.90 million) shortly in respect of intercompany loan balances due from the Wholesale Division to other Animalcare group companies. A further £0.37 million (€0.40 million) is payable to Animalcare on 30 June 2019 in relation to the remaining intercompany balance owed. The balance of approximately £0.23 million (€0.25 million) is subject to achieving specific revenue targets between 1 July 2019 and 30 June 2020 and payable in July 2020. \nChris 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.\"\nThe 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.\nFinancial summary of the Wholesale Division:\nFor the year ended 31 December 2017, the Wholesale Division generated turnover of £23.9 million and EBITDA of £0.3 million. As of 31 December 2017, the Wholesale Division had gross assets of £5.9 million and net assets of £3.8 million excluding intercompany debt due to Ecuphar NV. \nIllustrative financial effects of t...