Anpario acquires Bio-Vet, expands presence in US animal health market
The deal, which could rise to £5.4m based on future performance targets, is set to be earnings-enhancing from the outset, according to market analysts.
Founded in 1996, Bio-Vet operates out of a 25,000-square-foot manufacturing facility on a 3.45-acre site and employs over 30 people.
The company specializes in animal health and nutrition products, with a primary focus on the US dairy market. Its products are designed to boost animal health, increase live weight, and enhance farmer return on investment (ROI).
Bio-Vet is recognized in the US for its ‘Capsule-In-A-Capsule’ technology, which enables the combination of typically incompatible ingredients into a single dose, allowing farmers to administer products more efficiently and with less stress on animals, reported Anpario.
The company's product range includes capsules, boluses, pastes, soluble powders, electrolytes, and daily-fed additives. In 2023, Bio-Vet generated $8.2m in sales, with direct-fed microbials accounting for around 50% of its revenue.
Shore Capital equity analyst, Akhil Patel, was enthusiastic about the deal, noting that Anpario secured Bio-Vet at a highly attractive 6.5x EV/EBITDA multiple. He highlighted the acquisition's strategic importance, allowing Anpario to diversify its product portfolio across multiple species.
Americas push
Anpario’s CEO, Richard Edwards, said strong synergies have already been identified between the two companies. The deal would enable further innovation and make Bio-Vet’s products more accessible on a global scale, he remarked.
He also noted the importance of the Americas region and the ruminant sector in Anpario’s growth strategy, referencing the company’s establishment of a US subsidiary in 2014.
As sustainability trends drive demand for higher farm productivity, reduced emissions, and alternatives to antibiotic growth promoters, Anpario stated that the merger positions it well to help farmers adapt and improve animal productivity.
