Ritchey tags £14m Genus deal
RITCHEY, the North Yorkshire animal tagging and healthcare business, will treble in size after spending £14m on reverse takeover of a subsidiary of animal genetics giant Genus today.
The move by the Masham firm which is valued at around £5m, will see it move up from the junior PLUS Markets stock exchange to the Alternative Investment Market (AIM).
It is buying the Animalcare veterinary pharmaceutical business for £14m and will finance the acquisition through a combination of debt and fundraising on its move up to AIM.
Animalcare made operating profits of £1.6m in the year to June 30 and had net assets of £6.7m.
Ritchey believes the acquisition will focus it on the relatively stable and growing animal care market, broaden its product portfolio for a wider range of animals and help balance Ritchey's business against seasonal fluctuations.
In a statement, the firm's directors said: “The addition of Animalcare will raise the profile of the group and provide a platform to facilitate management's growth ambitions which pivot around both organic growth and the possibility of expansion via the acquisition of select, complementary businesses both in the UK and Europe.”
Animalcare has a pipeline of new products in development which Ritchey believes will give it exposure to European markets where it can work with new distributors.
Ritchey also today announced its results for the year to June 30 with turnover up by 5.5% from £7.85m to £8.28m and pre-tax profits significantly increased to £48,367 from £26,959.
The non-executive chairman of Ritchey is James Lambert, chief executive of Leeming Bar ice cream group R&R Ice Cream, formerly Richmond Foods.
Ritchey was advised on the deal by Robin Johnson, corporate partner at law firm Eversheds in Leeds.
Genus, based in Hampshire, uses biotechnology to improve breeding in dairy and beef cattle and pigs and is listed on the main London Stock Exchange.
