York-based Animalcare Group plc said its newly incorporated Australian entity, Animalcare Australia Pty Ltd, has entered into a conditional share purchase agreement to acquire Sydney-based Randlab Australia Pty Ltd, an equine veterinary business, for an enterprise value of £62.2 million.
The acquisition will be funded through Animalcare’s existing cash resources, committed debt facilities and an equity placing.
Animalcare Group CEO Jenny Winte said: “We are delighted to have reached an agreement to acquire Randlab subject to completion of the transaction. This is a highly attractive opportunity to acquire a market-leading equine asset in Australia that is expected to deliver significant earnings accretion in 2025.
“This is a transformational deal that provides an excellent fit with our growth strategy and is complementary to our product portfolio. Over the last 20 years the Randlab team has built a sustainable, profitable and cash generative business with an impressive track record in a market that places great importance on knowledge and expertise of equine health and wellbeing.
“Not only will this acquisition significantly elevate the Group’s offering in a growing equine market, it will also open wider opportunities in a commercially and regulatorily aligned business environment. We are keen to start working with our Randlab colleagues as soon as possible.”
Angelo Vasili, CEO/Managing Director of Randlab, said: “After 20 years building Randlab, it is time for me to take a step back. I am deeply grateful to all who have participated in making it what it is today.
“It was important for me to find someone who was equally passionate to serve our equine veterinarian customers and through them, their clients. In Animalcare we have found that right fit, and I am sure they will continue to help our local teams in Australia, New Zealand and UAE deliver the unique Randlab offering.
“Finally, I want to thank the exceptional team that is Randlab today. Together they have made a real difference in our goal to provide equine veterinarians wherever they practice with a comprehensive range of prescription products for their everyday practice and to be the people closest to the equine vets.”