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.”