Change of name as Ritchey takes AIM
RITCHEY, the North Yorkshire animal tagging and healthcare business, has stepped up to the AIM market and changed its name to Animalcare after a £14m acquisition saw it treble in size.
The Masham firm has moved from the junior PLUS Markets stock exchange to the Alternative Investment Market where trading begins in its shares today.
It follows its announcement last November of a reverse takeover of a subsidiary of animal genetics giant Genus.
It has bought the Animalcare veterinary pharmaceutical business for £14m and has financed the acquisition through a combination of debt and fundraising on its move up to AIM. Prior to the deal it was valued at just £5m.
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.
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.
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 and Kathryn Walters 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.
Mr Lambert and fellow directors Simon Riddell, Nick Downshire and Stephen Wildridge, invested a total of around £1m in the company as part of the acquisition.
Chief executive Mr Riddell, said today: “The enlarged group commands strong positions in niche areas supplying both the livestock and companion animal markets, and offering excellent growth opportunities. We have ambitious plans which include increasing sales through our established customer base and distribution network, broadening our product range, entering new markets and selectively making acquisitions.”
