Lawrence plc
Acquisition of minority shareholding in ECO Animal Health
Lawrence plc ("Lawrence") is pleased to announce that it has today signed heads
of agreement with the shareholders of ECO Animal Health, subject to contract, to
acquire the 50 per cent. that Lawrence does not already own of ECO Animal Health
(Europe) Limited ("ECO") (the "Acquisition"). ECO is the holding company of the
trading operation of ECO Animal Health which specialises in the development and
distribution worldwide of veterinary pharmaceutical products. The Board
anticipates that it will enter into a formal agreement with regard to the
Acquisition shortly and a further announcement will be made in due course.
The initial consideration will be £8 million in cash, to be satisfied from
Lawrence's own resources, and the issue of 3.3 million new Lawrence ordinary
shares. The new shares will be the subject of a lock in arrangement whereby
they cannot be sold before the second anniversary of the completion of the
Acquisition without the prior specific approval of the Company and Charles
Stanley, its Nominated Adviser. Further consideration of up to one million new
ordinary shares may become payable in the event that certain profit performance
targets are met by ECO before 31 March 2009.
In the year ended 31 March 2004, profits before tax attributable to ECO were
£1million on revenues of £14million; net assets were £2.6million.
Application for the 3.3 million new ordinary shares to be admitted to trading on
AIM will be made following completion of the Acquisition. There will then be
30,120,727 Lawrence ordinary shares in issue.
Peter Lawrence, Chairman of Lawrence, commented:
"We are delighted that ECO will soon become a wholly owned subsidiary of
Lawrence at what should prove to be a very exciting point in the development of
the company. The recent positive developments in relation to Aivlosin,
including the commencement of marketing in Europe, coupled with the work being
undertaken on further valuable marketing authorisations, should underpin the
anticipated growth in ECO".
4th October 2004
Enquiries:
Lawrence plc 020 8336 2900
Peter Lawrence
Charles Stanley & Co Ltd 020 7739 8200
Philip Davies
Redleaf Communications Ltd 020 7955 1410
Emma Kane
Spiro Financial 020 8949 0428
Anthony Spiro