LONDON: Anpario Plc (AIM: ANP), the independent manufacturer of natural sustainable animal feed additives for health, nutrition and biosecurity, has completed the acquisition of Bio-Vet Inc., including the land and buildings at its production facility in Barneveld, Wisconsin, United States for a total net cash consideration of up to US$7.3m.

Bio-Vet is a leading producer of animal health and nutrition products combining the latest research and real-world experience to deliver innovative solutions to the farmer. 

Predominantly supplying the US dairy market, Bio-Vet’s solutions focus on improving health by supporting the animals’ natural system as well as increasing profitability for the farmer, which fully aligns with Anpario’s own vision and value proposition.

In the US, Bio-Vet sells directly to farmers, veterinarians and through resellers to reach the smaller farmer.  Only a small proportion of sales are currently outside of the US, which is where Anpario’s global sales and distribution network can expand Bio-Vet’s market opportunity for its products.

Bio-Vet employs over 30 members of staff and operates from a single 25,000 square feet manufacturing facility and offices constructed in 2013 and located on a 3.45 acres site, suitable for future expansion, offering Anpario an ideal platform to support its ambitions in the Americas region. 

Bio-Vet was founded by the late Dr William A. Zimmer in 1996 and has built a strong reputation in the industry for its innovation in the creation and manufacture of animal microbial and nutrition products uniquely combined with delivery systems such as Capsule-In-A-Capsule™.

The acquisition is in line with the company’s strategy, creating further species diversification into the ruminant sector where, combined with Bio-Vet’s sales team, Anpario can market its complementary ruminant products including Orego-Stim® and Anpro®.

The global probiotics in animal feed market was valued at US$4.2 billion in 2022 and is projected to grow at a CAGR of 9.1% to reach US$7.1 billion by 20281, which is more than four times the size of the global phytogenic feed additives market.

Anpario Inc. has acquired 100% of the share capital of Bio-Vet Inc. for an initial cash consideration of US$6.3m, including Bio-Vet’s excess cash of US$2.3m, on a debt-free basis, plus an additional earnout consideration of up to US$1.0m in cash subject to the EBITDA for the 12-month period following completion being not less than US$0.78m.  A new company, Anpario Real Estate Holdings LLC, has been set up which will purchase the associated land and buildings for US$2.3m, utilising the excess cash in Bio-Vet Inc. The acquisition will be funded from the Group’s free cash, which as at 27th September, and prior to this transaction, stood at £13.3m.

For the year ended 31 December 2023, Bio-Vet group reported (unaudited) revenue of US$8.2m, Normalised Profit before Tax* of US$0.7m and net assets expected to be not less than US$5.4m, subject to completion accounts.

Richard Edwards, Chief Executive Officer of Anpario, commented: “We are delighted to have acquired Bio-Vet, which is in line with our strategy of species diversification and bringing significant new product groups to the portfolio, which can be marketed through our global sales and distribution network.  The deal also gives us an excellent production facility which makes us operationally more resilient and acts as a strong platform to support growth in the Americas region.

We look forward to welcoming the Bio-Vet staff and are very pleased that the current leadership team are remaining with the business in their current roles as the two companies start to collaborate more closely which had already begun with the launch of Orego-Stim® to the Bio-Vet sales team in recent weeks.”  

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