CIC expands veterinary care biz with Asiavet Lifesence acquisition

Tuesday, 6 September 2022 03:27 - - {{hitsCtrl.values.hits}}

CIC Holdings PLC has acquired Asiavet Lifesence Ltd., a company engaged in the business of importing veterinary products.

The acquisition will further strengthen CIC’s position as a premier specialist for the supply of internationally acclaimed vet care products for the poultry industry as well as a line of pet care products.

The CIC Veterinary Care operation in FY22 delivered a satisfactory performance with both key verticals of poultry care and pet care products performing well.

Benefiting from the revival in the country’s poultry industry, CIC’s Veterinary Care business increased its market share. CIC remained a dominant player in the fast-growing pet care market. In a related development, Nexgard tick protection solution was introduced as a new addition to the pet care range.

In FY22, CIC’s livestock solutions generated Rs. 12.6 billion revenue, up from Rs. 9.1 billion in the previous year. Pre-tax profit doubled to Rs. 1.24 billion from Rs. 612 million.

CIC works with approximately 25 dealers and has 100 direct customers in the veterinary care business.

With regard to the new acquisition, CIC said the first tranche of the consideration of Rs. 148.3 million representing seven times profit after tax (as audited) for the FY1 April 2021 to 31 March 2022 (FY1), less retention in a sum of Rs.30.3 million was settled on 31 August 2022 and the sum retained is to be released upon realisation of stocks and debtors held by Asiavet Lifesence as at 31 August 2022.

The second and third tranches of the consideration for the said acquisition will be calculated and paid in the following manner:

(a) a sum equal to half the profit after tax (as audited) for the FY1 April 2022 to 31 March 2023 (FY2), which exceeds the profit of FY1 multiplied by seven, which sum shall be paid within 14 days of the finalisation of the audit; and

(b) a sum equal to half the profit after tax (as audited) for the FY1 April 2023 to 31 March 2024 (FY3), which exceeds the profit of FY2 multiplied by seven, which sum shall be paid within 14 days of the finalisation of the audit