Animalcare Group has agreed to acquire Australian equine veterinary business, Randlab, for £62.2m, in part using proceeds from fundraising announced today.

The York-based supplier of veterinary pharmaceutical products said it would be using existing cash resources and committed debt facilities to fund the acquisition, as well as £20m raised through a new equity placing.

Chief executive at Animalcare, Jenny Winter, said: "We are delighted to have reached an agreement to acquire Randlab subject to completion of the transaction. This is a highly attractive opportunity to acquire a market-leading equine asset in Australia that is expected to deliver significant earnings accretion in 2025.

"This is a transformational deal that provides an excellent fit with our growth strategy and is complementary to our product portfolio. Not only will this acquisition significantly elevate the group's offering in a growing equine market, it will also open wider opportunities in a commercially and regulatorily aligned business environment."

Animalcare had previously raised £20m through an oversubscribed placing and subscription, after placing around 8.6 million shares at a price of 232.5 pence per share.

The firm added that it expects the acquisition to be materially earnings accretive, by as least 20% in the 2025 financial year.

On the new fundraising, Winter concluded: "We are delighted to announce today's successful fundraise of £20m. The net proceeds of the fundraise will be used to part fund the acquisition of Randlab - a transformational deal that provides an excellent fit with our growth strategy and is complementary to our product portfolio."

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