LONDON: CVS, a leading UK-listed veterinary group, has announced the sale of its Crematoria operations to Anima Care UK Limited, a subsidiary of Anima Care Holding and part of the Funecap Group, a major European funeral services provider. The transaction, valued at £42.4 million, represents a 10x multiple of the Crematoria’s adjusted EBITDA.
The disposal aligns with CVS’s strategy to capitalize on growth opportunities within its core veterinary and diagnostics services. Following an unsolicited offer by Funecap, CVS decided to divest from its Crematoria, which currently accounts for 1.8% of the Group’s revenues and 3.2% of its adjusted EBITDA. The transaction is expected to be finalized within the next five weeks.
Funecap will continue to provide clinical waste disposal and cremation services to CVS’s practices and clients after the deal closes. CVS plans to use the proceeds from the sale to enhance its investments in the UK and expand into Australia, aiming to acquire assets at attractive multiples while maintaining leverage below 2.0x.
Richard Fairman, CEO of CVS, stated, “This disposal reflects our commitment to focusing on our core veterinary services while ensuring quality end-to-end services for our clients. The capital generated will support our strategic expansion and deliver value to the Group.”
In the fiscal year ending June 30, 2024, the Crematoria operations reported revenues of £12 million, adjusted EBITDA of £4.3 million, and a profit before tax of £3.6 million. CVS expects to record a one-off profit of approximately £32 million from the sale in its FY2025 accounts.
The announcement includes inside information in compliance with the Market Abuse Regulation (MAR). Richard Fairman is responsible for the disclosure on behalf of CVS Group.