Swedencare AB : (publ) acquires leading British Animal Health company

Non-official translation of the original Swedish press release

Swedencare AB (publ) ("Swedencare") acquires 100% of the British company Nutravet (UK) Limited ("Nutravet"). The purchase price amounts to approximately 375 million SEK and consists of a cash amount of approximately 281 million SEK and a directed new share issue of 580 769 shares in Swedencare to the seller upon closing, which is expected to take place on October 1st, 2020. Through the acquisition Swedencare will receive a comprehensive and unique product portfolio of nutraceuticals in the premium segment for dogs, cats and equine which are sold exclusively to thousands of British and European veterinary clinics and animal hospitals.

The acquisition of the business is conditional on certain customary contract terms.

"With the acquisition of Nutravet, we create a unique group which entails different growth and profitability driven companies within animal health. It's amazing to be able to add yet another outstanding and profitable company to the Swedencare family. I am both excited and humble to the task of leading this expanded group. At the same time, I am very comfortable as we in Matthew Shaw get access to a competent and experienced colleague who, just like me, thrives by growth and profitability together with customer satisfaction and innovation. Matthew has built a fantastic company and concept which we will nuture, develop and expand out into the world market!" says Håkan Lagerberg, CEO of Swedencare

About Nutravet

The company, founded by Matthew Shaw in 2008, is today Britain's leading "exclusive-to-vet"-concept with more than 2 200 veterinary clinics and animal hospitals as direct customers. Furthermore, 2017 was the start of a comprehensive cooperation with Europe's largest veterinary care provider comprising an expansive network of clinics, hospitals and out-of-hour centers based across 11 countries. The cooperation so far has been in the UK but will start launching in other countries during the years to come. The in-house developed product portfolio covers several therapy areas, but not currently dental products, which is why the Swedencare flagship product line ProDen PlaqueOff® will complement the customer offering.

The acquired company had sales of 5,4 million GBP for the period July 2019 - June 2020, corresponding to approximately 60,9 million SEK, with an EBITDA profit of 2,8 million GBP, corresponding to 31,3 million SEK, corresponding to an EBITDA margin of 51%.

The purchase price of 33 million GBP on a cash- and debt free basis, corresponds to approximately 375 million SEK, is paid through a cash payment of 281 million SEK and a directed new share issue to the seller of 580 769 shares in Swedencare.

Nutravet will be led by Matthew Shaw, founder and former owner. Matthew Shaw will also become one of the major shareholders of Swedencare with a shareholding of 580 769 shares.

"This is an exciting time for Nutravet, providing fantastic opportunities to further expand beyond our market leading position in the UK. Swedencare complements our ethos perfectly and offers the business proven international leadership. We're thrilled to join the family and keen to maximize future growth" says Matthew Shaw, Nutravets CEO and founder.

Short term synergies are expected within sales and marketing due to the ProDen PlaqueOff® product family of Swedencare, which strategically complements the products of Nutravet. Further down the line, synergies and opportunities regarding marketing and sales of the whole product range and concept of Nutravet are expected when introduced to Swedencare's international network of distribution.

Further information in regards to the acquisition can be found on the website of Swedencare www.swedencare.se, where the proforma group earnings including Nutravet are presented for the 12 month period July 2019 - June 2020.  More information about Nutravet can be found at www.nutravet.co.uk

The Law firm Lindahl KB and Pareto Securities AB have assisted Swedencare with advice in the transaction.

For more information please contact:

Håkan Lagerberg, CEO Swedencare
Mobil: [phone]
Email: [e-mail]
 

Jenny Graflind, CFO Swedencare
Mobil: [phone]
Email: [e-mail]

Per Malmström, Chairman of the Board
Mobil: [phone]

FNCA is the Certified Adviser of the Company
Phone: [phone]. Email: [e-mail]

Please visit the Company homepage www.swedencare.se

About Swedencare

Swedencare develop, produce, market, and sell premium products on the global and fast-growing market within animal healthcare for cats, dogs and horses. The product groups ProDen PlaqueOff®, Stratford and NutriScience are represented on approximately fifty markets in all parts of the world, including the headquarter in Malmö, eight subsidiaries in the Nordics, United States, France, Spain, Greece, Great Britain and Ireland and through an external distribution network. Swedencare's sales have increased significantly over the last few years with strong margins and results. The board of directors and the management have a wide and extensive experience of international marketing and sales.

This is information that Swedencare AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 5:31 p.m. CET on September 24th, 2020.

https://news.cision.com/swedencare-ab--publ-/r/swedencare-ab--publ--acquires-leading-british-animal-health-company,c3202415

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