Animalcare Group

Animalcare Group was formed in early 2008 following the acquisition of Animalcare Limited by Ritchey plc. Animalcare Group is a leading supplier of products to the companion animal veterinary and livestock markets. It sells a range of licensed veterinary pharmaceuticals, and manufactures animal identification microchips and other veterinary supplies.

The management team of Ritchey identified the opportunity to bid for Animalcare Limited in early 2007. Animalcare Limited was a profitable subsidiary of Genus Plc, which was being disposed of by way of a competitive auction. Animalcare Limited would expand Ritchey into attractive complementary markets through the addition of higher growth products and a range of branded value added pharmaceuticals. This presented Ritchey with an opportunity to transform the Group from a cyclical, commodity market driven manufacturer and supplier of livestock products into the supplier of a diverse range of animal care products from pharmaceuticals to identification microchips.

The transaction was relatively complex. Animalcare Limited would account for almost 80% of the group’s profitability therefore the deal constituted a reverse takeover and on completion the enlarged and renamed Group was to transfer its listing from PLUS markets to AIM. The Group would also need to secure adequate funding to meet the agreed consideration.

After a lengthy bidding process Genus accepted a bid of up to £14m from Ritchey. The enlarged group was able to raise the funds through a mixture of new debt facilities and the proceeds of a £7.5m placing that was led by Brewin Dolphin in January 2008. Conditions in the equity market at the time were far from easy and the successful conclusion of this transaction was heavily dependent on a coordinated effort from the company’s management and Brewin Dolphin.

If you would like to discuss this transaction please contact Chris Glasper on 0845 059 6542.