4th Sep 2018 11:10
LONDON (Alliance News) - Animalcare Group PLC on Tuesday said it has sold its wholesale division for GBP2.7 million as part of a business strategy to focus on higher-margin veterinary pharmaceuticals business.
The animal health business has sold unit Medini NV to Belgian company Vetdis Holding NV. Shares in Animalcare were trading 2.10% higher on Tuesday at 173.50 pence per share.
"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,' said Animalcare Chief Executive Officer Chris Cardon.
The company received an initial cash sum of GBP330,000 in relation to the sale and expects to receive a further GBP1.72 million on account of inter-company loan due from the wholesale unit to other Animalcare divisions.
Further, Animalcare will get GBP370,000 at the end of June 2019 for remaining inter-company loans. Additionally, a sum of GBP230,000 is payable in July 2020 to Animalcare, subject to meeting certain revenue targets from the period of July 2019 to the end of June 2020.
Proceeds from the sale will be utilised by the company to improve its debt position and support new product development.
Animalcare will record a GBP700,000 impairment loss in relation to the disposal. For 2017, Medini generated revenue of GBP23.9 million and earnings before interest, taxes, depreciation and amortisation of GBP300,000.
Related Shares:
Animalcare Grp