Animalcare expands into Europe with transformational takeover

PET DRUGS firm Animalcare is to expand into Europe with a “truly transformational” takeover of a Belgian firm that will give it sales operations in seven countries.

York-based Animalcare said the deal will be part-funded by a placing to raise at least £30m. The target is Ecuphar, a European animal health company that develops and sells veterinary pharmaceutical products.

The deal values Ecuphar at around £127m and the enlarged group is expected to be valued by the stock market at over £210m. The acquisition constitutes a reverse takeover under AIM Rules and is conditional upon shareholder approval.

Ecuphar is led by founder and CEO Chris Cardon and Animalcare said that he is supported by “a strong and highly experienced management team”.

The group said Animalcare and Ecuphar are highly complementary businesses and the deal will create a specialist pan-European animal health company.

The firm will have direct sales organisations in seven countries, a big jump for Animalcare which currently only has one in the UK. The new group will export to 50 markets and will have 98 sales representatives and 28 agents.

Last year, Ecuphar made revenues of £68.4m and earnings of £8.9m. The enlarged group will own 50 licenced drugs and eight vaccines.

Animalcare said the new firm is expected to be earnings enhancing in the first full financial year of ownership.

Mr Cardon will take over as CEO and Animalcare’s current CEO Iain Menneer will move to chief operating officer. James Lambert will step down as chairman and become a non-executive director.