REG - Animalcare Group PLC - Strategic investment in Australian business

AnimalcareAnnouncement

13/06/2025 07:45

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RNS Number : 7545M  Animalcare Group PLC  13 June 2025

13 June 2025

Animalcare Group plc

("Animalcare", the "Company" or the "Group")

Strategic investment in high-growth Australian Companion Animal health business

Minority stake provides opportunity to expand the Group's Asia-Pacific
presence

 

 

Animalcare Group Plc (AIM: ANCR), the international animal health business, is
pleased to announce that, in line with Group's geographic expansion strategy,
it has acquired a 25% strategic equity stake in InVetro Pty Ltd, an
Australian-based Companion Animal health business ("InVetro"), for A$3m.

 

InVetro will utilise the funds to accelerate investment in scaling its
commercial footprint, expanding its product portfolio and developing its new
product pipeline, with an agreed pathway to increased ownership by Animalcare
over time.

 

The strategic investment expands Animalcare's presence in the growing Asia-Pacific veterinary market, building on its acquisition of Randlab completed on 3 January 2025.

 

About InVetro

 

InVetro is a development-stage Australian veterinary pharmaceutical company
committed to advancing Companion Animal care. Animalcare believes that the
business is poised for rapid growth over the next five years, underpinned by:

 

 ·         A portfolio of pharmaceutical marketing authorisations and licences, enabling
           immediate and near-term revenue generation
 ·         A pipeline of products tailored to the needs of the Australian market
 ·         A highly experienced and proven management team with deep sector expertise

 
Strategic Rationale

 

This minority equity investment offers a capital efficient opportunity for
Animalcare to establish a presence in the fast-growing Companion Animal health
market in Australia, with potential to access other Asia-Pacific territories
over time. The Group's longer-term ambition is to build an overall Companion
Animal business in the region with revenues of approximately A$20-25m.

 

Key benefits of the equity investment include:

 

 ·         Speed to market: Immediate access to a business with regulatory approvals and
           infrastructure, accelerating Animalcare's entry into Australia with potential
           to expand across Asia-Pacific
 ·         Local expertise: Leverage of InVetro's established relationships, market
           knowledge, operational and regulatory capabilities
 ·         Scalable platform: A foundation for future collaboration and product
           distribution, with potential for increased ownership by Animalcare over time
 ·         Extended bridgehead: Opportunity to expand the reach of the Group's portfolio
           of existing Companion Animal brands into Australia and other Asia Pacific
           markets

 
Jenny Winter, Chief Executive Officer of Animalcare commented:
"This strategic investment expands the Group's geographic footprint in the large and growing Companion Animal health market. The Australian market presents a significant opportunity, and this partnership allows us to participate in that growth with a trusted and capable team already on the ground. We look forward to supporting the business as it transitions into full-scale commercial operations and begins to maximise its potential."

 

Corinne Mawson and Zoe Chrysopoulos, Directors and Founders of InVetro,
commented:

"At InVetro, our mission is to drive innovation in veterinary care and bring
next level solutions to clinics across Australia. Our partnership with
Animalcare will provide the opportunity to accelerate our portfolio and expand
our market penetration. We are excited to launch trusted, global products
including HCA spray (Itchderm), Orozyme, Plaqtiv+, proGlan and proHibex. Our
veterinary exclusive range continues to expand, ensuring Australian
veterinarians have access to the best solutions for their patients."

 

Principal terms of the strategic investment

 

Under the terms of the deal, Animalcare (through its subsidiary Animalcare
Australia Pty Ltd) will subscribe for a 25% equity interest for a total cash
consideration of A$3m (approximately £1.4m(1)). InVetro will utilise these
funds to accelerate investment in scaling its commercial footprint, expanding
its product portfolio and developing its new product pipeline. Revenue
generation from initial products is expected to commence this calendar year,
with all current products launched by the end of 2026.

 

Note (1) calculated using an GBP:AUD exchange rate of 2.09

 

Animalcare is committed, via a seat on the Board, to working alongside the
existing InVetro Board and its shareholders to grow and scale the business
over the next five years, with InVetro benefiting from Animalcare's global
network of animal health contacts and companies, in addition to access to the
experience and knowledge of Animalcare's senior leadership team.

 

As part of the transaction, Animalcare has agreed to arrangements that provide
a pathway to acquiring a majority stake in the future. These arrangements
include a call option for Animalcare to increase its holding to 51% in InVetro
between 30 June 2029 and 31 December 2029, with the founding InVetro
shareholders granted a put option which can be exercised from 1 January 2030
to 30 June 2030.

 

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014.

 

For more information, please contact:

 Animalcare Group Plc                                                                                       +44 (0)1904 487 687

 Jenny Winter, Chief Executive Officer

Chris Brewster, Chief Financial Officer

Media/investor relations

                                                                                                            communications@animalcaregroup.com

 Stifel                                                                                                     Tel: +44 (0)20 7710 7600

 (Nominated Advisor & Joint Broker)

 Ben Maddison

 Nicholas Harland

 Francis North

 Panmure Liberum                                                                                            +44 (0)20 7886 2500

 (Joint Broker)

 Corporate Finance

 Freddy Crossley/Emma Earl

 Corporate Banking

 Rupert Dearden

 Alma Strategic Communications                                                                              +44 (0)20 3405 0205

 Caroline Forde                                                                                             animalcare@almastrategic.com (mailto:animalcare@almastrategic.com)

Kinvara Verdon

Rose Docherty

 

About Animalcare

Animalcare Group plc is a UK AIM-listed international veterinary sales and
marketing organisation. Animalcare operates in seven European countries as
well as Australia and New Zealand and exports to approximately 40 countries in
Europe and worldwide. The Group is focused on bringing new and innovative
products to market through its own development pipeline, partnerships and via
acquisition.

 

For more information about Animalcare, please visit www.animalcaregroup.com
(http://www.animalcaregroup.com)

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