Wetherby-based diagnostics company Avacta Group plc announced that Vimian Group AB has acquired Avacta’s veterinary division Avacta Animal Health for up to £2.3 million.
“Avacta Animal Health provides veterinary allergy diagnostic solutions through its laboratory in Wetherby, UK and re-sells immunotherapy products from Nextmune, a Vimian Group company, to veterinary clinics across the UK,” said Avacta.
“The business also provides testing kits to veterinary laboratories across Europe.
“Avacta Animal Health Limited will be acquired by Nextmune Holdings BV and will be consolidated into Vimian’s Specialty Pharma segment on 15 March, 2022.”
Avacta has received an upfront payment of £900,00 and will receive additional deferred consideration of up to £1.4 million dependent on the combined performance of the consolidated business.
The Animal Health division made an operating loss — prior to an impairment of historic goodwill — of £300,000 during the year ended December 31, 2020.
The carrying value of the division was £1 million.
The sale proceeds will provide further funds for the development of Avacta’s diagnostics and therapeutics divisions.
Avacta CEO Alastair Smith said: “The sale of the Avacta Animal Health business allows the group to focus entirely on growing its core businesses; diagnostics and therapeutics.
“Having had our Animal Health division since 2009, we are delighted that Vimian will be retaining the entire Avacta Animal Health team and are well placed to grow the business.”
Magnus Kjellberg, CEO of Vimian’s Specialty Pharma segment Nextmune, said: “This acquisition significantly strengthens Nextmune’s competitive position in the UK.
“With our own laboratory for veterinary allergy diagnostics in the country and a full-service offering covering all veterinary dermatology needs, we see significant opportunities to accelerate sales and improve customer experience in the UK.
“The cross-selling opportunities via this business existing customer base as well as the increased laboratory capacity for Nextmune are also key components in driving incremental growth.”