Carr's Group Plc (LON:CARR) has expanded its animal health products business with the acquisition of Animax Limited, and related business Clinimax Limited, for a total cash consideration of up to £8.5mln.
The FTSE All-Share-listed agriculture and engineering group said Suffolk-based Animax, which was established in 1982, is at the forefront of innovation in the field of livestock trace element supplementation via patent-protected bolus.
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As part of the acquisition, Carr's said it has also acquired the entire issued share capital of Animax's related business, Clinimax Limited, which is a manufacturer of specialist disinfectant products for use in the medical industry, which also carries the benefit of patent protection.
The company said both businesses are being acquired for an initial cash consideration of £6mln, with an additional cash consideration of up to a maximum of £2.5mln payable over the period to November 2020, based on the achievement of agreed financial targets.
For the year ended 30 November 2017, Animax and Clinimax in aggregate recorded underlying earnings (EBITDA) of £0.6mln and pre-tax profit of £0.3mln.
Tim Davies, Carr’s chief executive, commented: “This acquisition is in line with our stated strategy of developing our offering in the growing livestock specialist nutrition market both in the UK and internationally.
“Animax is highly complementary to our global feed block business and will add value to our customers' businesses. Animax has a history of developing market-leading products based on sound research with their brands being recognised for their efficacy and performance.”
He added: “The combination of Carr's resources, knowledge and distribution, together with the Animax research capability, product technology and history of innovation, make a compelling case for this strategic step for the Group."