Conditional deal unveiled to acquire equine veterinary business for £62.2m
Animal health business, Animalcare Group, has entered into a conditional share purchase agreement to acquire Randlab, an Australian equine veterinary business for an enterprise value of A$120m/£62.2m.
The Acquisition consideration will be funded through Animalcare’s existing cash resources, committed debt facilities and an equity placing.
Animalcare says the deal will significantly strengthen its presence in the equine veterinary market, which will represent more than 20% of group sales on a pro forma basis (to 30 June 2024).
It adds this is a historically underinvested sector, where Animalcare will be positioned as a “partner of choice”.
Jenny Winter, chief executive of York-headquartered Animalcare Group, said: “We are happy to have reached an agreement to acquire Randlab subject to completion of the transaction.
“This is a highly attractive opportunity to acquire a market-leading equine asset in Australia that is expected to deliver significant earnings accretion in 2025.
“This is a transformational deal that provides an excellent fit with our growth strategy and is complementary to our product portfolio.
“Over the last 20 years the Randlab team has built a sustainable, profitable and cash generative business with an impressive track record in a market that places great importance on knowledge and expertise of equine health and wellbeing.
“Not only will this acquisition significantly elevate the group’s offering in a growing equine market, it will also open wider opportunities in a commercially and regulatorily aligned business environment.”
Angelo Vasili, CEO/managing director of Randlab, added: “After 20 years building Randlab, it is time for me to take a step back. I am deeply grateful to all who have participated in making it what it is today.
“It was important for me to find someone who was equally passionate to serve our equine veterinarian customers and through them, their clients.
“In Animalcare we have found that right fit, and I am sure they will continue to help our local teams in Australia, New Zealand and UAE deliver the unique Randlab offering.”
Randlab has an extensive portfolio of equine brands and a track record of new product launches, including 14 products in the last four years. The business generated revenues of A$22.9m/£11.7m in FY24.
Squire Patton Boggs advised Animalcare on both its conditional acquisition and its proposed placing.
The transaction was delivered by members of the Squire Patton Boggs Corporate team in both the UK and Australia.
The Sydney Corporate team, led by Michael Gajic, Ashley Rose, Louisa Hine, Sarah Roper and Georgia Mateer, advised Animalcare on the conditional acquisition of Randlab.
The UK Corporate team, led by Hannah Kendrick, Ben Morgan, Chris Blair and Grace Walker, advised Animalcare on its proposed placing to raise approximately £20m.
Pitcher Partners team, led by Vinod Parasuraman and Paul Marino advised Animalcare on the financial and tax aspects of the acquisition.
Kendrick said: “It has been great to work with both the Animalcare team and our Squire Patton Boggs colleagues to deliver this significant cross-border acquisition and fundraise. We look forward to continuing to support Animalcare’s investment in the Australian market.”
Completion of the acquisition is expected in early January 2025.
