LONDON: Carr’s Group has announced the sale of its Engineering Division, comprised of Carr’s Engineering Limited and Carr’s Engineering (US), Inc., to Cadre Holdings, Inc. for a cash consideration of £75 million on a cash-free, debt-free basis.
Transaction Highlights:
– The sale, valued at £75 million, represents a multiple of 7.1x FY24 Adjusted EBITDA.
– Significant shareholder value unlocked, with net proceeds of up to £70 million to be returned via a tender offer.
– Cadre viewed as a strategic buyer and suitable custodian for the Engineering Division’s employees and customers.
– Transaction simplifies Carr’s structure, allowing focus on its Agriculture Division.
Completion of the sale is expected in the first half of 2025, pending customer and regulatory clearances. Carr’s also announced a separate sale process for Chirton Engineering and the disposal of six non-core properties, generating approximately £4 million.
Tim Jones, Non-Executive Chairman of Carr’s, stated, “This transformative moment is expected to deliver real value to all shareholders. Our Agriculture business is well-positioned for growth.”
David White, CEO of Carr’s, added, “Executing this critical step in our strategy allows us to focus on global opportunities for our Agriculture business. We extend our gratitude to our colleagues in the Engineering Division and wish them the best.”
Carr’s anticipates the transaction will enable it to operate as a pure-play global Agriculture business, enhancing its market position in alignment with anticipated macroeconomic recovery.
The Agriculture Division, specializing in livestock supplements, has been reorganized into a global specialist business. The new leadership team aims to improve operating margins, drive commercial growth, and expand into new markets. The division expects to benefit from predicted increases in global beef consumption and protein availability.