Randlab acquired by Animalcare Group

Animalcare Group plc, executing the transaction through its newly incorporated subsidiary Animalcare Australia Pty Ltd, finalizes the complete acquisition of Randlab for an enterprise value of . Structured on a debt-free, cash-free, and normalized working capital basis, this cross-border transaction values the acquired business at a multiple of 10.9x its adjusted core earnings generated during the fiscal year ending June 2024. For the target, which recorded in aggregated turnover alongside an adjusted EBITDA of and a margin of , this ownership transition marks the operational exit of its founding leadership. To finance the consideration, the British buyer mobilized its existing cash reserves and secured a committed €10 million acquisition debt facility—supplementing its existing €44.0 million revolving credit facility—along with the proceeds from an accelerated bookbuild equity placing. This financial architecture ensures that the acquiring group maintains a conservative proforma leverage ratio of approximately 1.0x upon closing. Strategically, this consolidation allows the acquirer to aggressively penetrate the global equine healthcare market, an underinvested sector projected to grow at an 8.3% compound annual rate. By internalizing this proprietary pharmaceutical portfolio, the buyer expects the equine segment to represent over 20% of its consolidated sales, while simultaneously diluting its historical exposure to third-party distribution contracts. The integration roadmap prioritizes significant commercial cross-selling synergies, aiming to distribute existing proprietary products through the newly acquired Australian and New Zealand networks. Operationally, the founder steps down as CEO to transition into a consultancy role, handing general management to Bruce Bell, who is joined by Brad Saunders as Finance and Operations Director. The transaction is projected to be materially earnings accretive, adding at least 20% to the buyer's earnings in the 2025 fiscal year. Stifel acted as the sole M&A adviser and bookrunner to the acquirer, while Panmure Liberum served as joint broker.