Animalcare sells wholesale division for GBP2.65m.
M2 PHARMA-September 4, 2018-Animalcare sells wholesale division for GBP2.65m
(C)2018 M2 COMMUNICATIONS
Animal health specialist Animalcare Group plc (AIM: ANCR) has completed the sale of its wholesale division, Medini NV, the company disclosed on Tuesday.
The business was acquired by Vetdis Holding, a privately owned company based in Belgium, for a total consideration of up to approximately GBP2.65m (EUR2.92m).
According to Animalcare CEO Chris Cardon, this sale is consistent with the company's goal to focus on its higher-margin veterinary pharmaceuticals business.
Animalcare has received an initial cash consideration of GBP0.33m (EUR0.37m) and expects to receive GBP1.72m (EUR1.90m) in the near future in respect of intercompany loan balances due from the wholesale division to other Animalcare group companies.
A further GBP0.37m (EUR0.40m) is payable to Animalcare on 30 June 2019 in relation to the remaining intercompany balance owed, with the final balance of approximately GBP0.23m (EUR0.25m) subject to achieving specific revenue targets between 1 July 2019 and 30 June 2020 and payable in July 2020.
The proceeds of the disposal are planned to be used to improve the company's debt position, and to provide further support for product development, both organically and through strategic acquisitions.
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|Date:||Sep 4, 2018|
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