Proactive Investors - Run By Investors For Investors

Animalcare expands into Europe with “truly transformational” reverse takeover of Ecuphar

The cash and shares acquisition of Ecuphar - a European animal health company - will see the enlarged group have direct sales organisations in seven countries, against just the one currently for Animalcare.
Cat and dog
The firm said the deal is structured on a consolidated Animalcare/Ecuphar enlarged issued share capital ratio of 37:63

Animalcare Group PLC (LON:ANCR), the generic veterinary medicines group is expanding into Europe with the “truly transformational” reverse takeover of Ecuphar NV, part-funded by a placing to raise at least £30mln.

The cash and shares acquisition of Ecuphar - a European animal health company focused on the development and sale of veterinary pharmaceutical products - will see the enlarged group have direct sales organisations in seven countries, against just the one currently for Animalcare.

READ: Animalcare says half year results exceed expectations

The AIM-listed firm said the deal is structured on a consolidated Animalcare/Ecuphar enlarged issued share capital ratio of 37:63 which will be satisfied through the issue of shares and cash to Ecuphar’s vendors.

It added that the cash component of the consideration will be satisfied in part through a placing of approximately 8.6mln new Animalcare shares - representing approximately 40.4% of the group’s existing issued share capital – via an accelerated bookbuild.

The group said this should raise gross proceeds of not less than £30.0mln, with the balance of £4.0mln to be funded from its existing cash resources. 

Seconday placing of around 0.8mln shares by directors

In addition, certain directors and employees of Animalcare intend to participate in a secondary placing in order to sell up to approximately 0.8mln shares.

Edwin Torr, a proposed director of the company – and a former executive director of Dechra Pharmaceuticals PLC (LON:DPH) - intends to participate in the placing by purchasing approximately 85,000 shares.

The group said the acquisition constitutes a reverse takeover under AIM Rules and, as such, is conditional, upon shareholder approval.

Iain Menneer, Animalcare’s chief executive officer said: "We are very pleased to present to shareholders this highly complementary acquisition which will provide enhanced scale and capabilities for the Group and create a pan-European animal health platform from which to accelerate growth.”

He added: “The acquisition will be truly transformational: it will expand our direct sales operation to cover seven countries and our international reach into 50 export markets, as well as greatly increasing the depth and diversity of our licensed veterinary medicines product range.”

View full ANCR profile View Profile

Animalcare Group Timeline

Related Articles

Scientist
December 03 2018
Since September, the group's portfolio has steamed ahead with a number of new and successful clinical trials, as well as a boost from the float of one of its companies on the Nasdaq
1542204301_heart.jpg
November 14 2018
The goal of the program is to extend the visualization extracted from 2D ultrasound images and visualize 4D images
scientist looking through microscope
April 11 2018
Kumaraguru Raja sees “multiple catalysts” in the year ahead which could put a rocket under the share price

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use