Financial Details and Funding Plan
Animalcare plans to finance the acquisition through a mix of its own cash reserves, committed debt facilities, and proceeds from a share placing. The company has launched an accelerated bookbuild process for the placing, aiming to raise approximately £20 million ($25 million) through the issuance of up to 8.5 million new shares at a price of 232.5 pence each. The deal is expected to close in early January, contingent on Randlab’s performance for the five months ending in November.
Growing Market for Equine Healthcare
The global equine healthcare market is estimated to be valued at $3.4 billion in 2023, with a projected compound annual growth rate of 8.32% from 2024 to 2030, according to Grand View Research. Factors such as research and development initiatives, increasing equine health complications, and the integration of artificial intelligence in equine health are driving the growth in this sector.
Advisors Involved in the Transaction
Squire Patton Boggs LLP is advising Animalcare on the acquisition, with teams in both Sydney and the U.K. assisting with the deal and the proposed share placing. Animalcare’s financial and tax advisers on the transaction include Pitcher Partners, an association of Australian accounting firms. Counsel information for Randlab was not immediately available.
