Animalcare completes purchase of Aussie equine vet firm Randlab
By Josh White
Date: Friday 03 Jan 2025
(Sharecast News) - Animalcare Group announced on Friday that it has completed the acquisition of Randlab, a leading equine veterinary company based in Australia.
The AIM-traded firm said the transaction, valued at AUD 120m (£62.2m), was finalised on 3 January, following its initial announcement on 3 December.
It said the acquisition included Randlab Australia, its wholly-owned subsidiary Randlab New Zealand, as well as Randlab Pty Ltd and Randlab Middle East Veterinary Medicine Trading Single Owner LLC.
Randlab specialises in equine pharmaceuticals, with an extensive portfolio of 58 brands, 47 of which are registered veterinary prescription medicines.
Its key product categories, such as gastric ulcer and joint treatments, account for 61% of its revenue.
Animalcare said Randlab had demonstrated robust financials, reporting AUD 22.9m in revenue and AUD 11m in EBITDA for the financial year ended 30 June 2024, with a three-year revenue compound annual growth rate of 13%.
The acquisition, conducted at an adjusted EBITDA multiple of 10.9x, was expected to boost Animalcare's earnings by at least 20% in the 2025 financial year.
It would also strengthen the company's presence in the equine market, which would now represent over 20% of group sales.
Animalcare said it financed the acquisition through a combination of existing cash reserves, committed debt facilities, and proceeds from an equity placing.
The group also secured additional acquisition financing of €10m to supplement its existing €44m revolving credit facility.
At 1000 GMT, shares in Animalcare were down 0.1% at 243.75p.
Reporting by Josh White for Sharecast.com.
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