On 21 September, Carr’s Group (LON:CARRC) announced that it had completed the acquisition of Animax, a producer of animal health products, for a total cash consideration of up to £8.5m. The transaction will broaden the group’s existing range of animal health products and supplements. We raise our estimates and reiterate our indicative valuation of 178p/share.
Boluses complement existing feed block format
Animax has a patented technology for encapsulating the trace elements copper, cobalt, iodine and selenium in boluses that are administered to sheep, cattle and their young. The boluses lodge in the animal’s digestive system, releasing a controlled dosage of the supplement over a six-month period. This is highly complementary to Carr’s feed block format in which trace elements and other supplements are administered via a lick. Post-acquisition, Carr’s will sell Animax’s products through its sales channels across the USA, New Zealand, Europe, the UK and Ireland.
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