Carr’s Group in £8.5m swoop for animal health products firm
Carlisle-based agriculture and engineering group Carr’s has acquired animal health products producer Animax for £8.5m.
Animax, based in Suffolk, was established in 1982. The business specialises in the research, development and manufacture of highly effective animal health products.
The firm is at the forefront of innovation in the field of livestock trace element supplementation.
Carr’s says the acquisition of Animax aligns with its strategy of investing in growing agriculture markets in the UK and internationally.
In particular, Animax and its product ranges enhance the group’s position in the global animal health and livestock supplementation markets, bringing innovation and patent-protected technology, together with a number of recognised and highly respected brands, broadening the group’s animal health and supplementation product ranges which brings added value to farmers.
As part of the acquisition, Carr’s has also acquired the entire issued share capital of Animax’s related party, Clinimax Limited, a manufacturer of specialist disinfectant products for use in the medical industry.
Both businesses are being acquired for an initial cash consideration of £6m, with an additional cash consideration of up to a maximum of £2.5m payable over the period to November 2020, based on the achievement of agreed financial targets.
For the year ended November 30, 2017, Animax and Clinimax in aggregate recorded EBITDA of £600,000 and profit before tax of £300,000. The combined gross assets of Animax and Clinimax as at November 30, 2017 totalled £5.6m, including cash of £1.2m.
The acquisition is expected to be earnings enhancing in the first full year of ownership.
The total consideration is being satisfied by the group’s existing facilities.
Carr’s chief executive, Tim Davies, said: “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.
“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.”