Animalcare Group PLC sold its wholesaling business Medini NV to privately held Vetdis Holding for a consideration of up to about £2.7 million.
The U.K.-based animal health company received an initial cash consideration of £330,000 and will receive £1.7 million in respect of loan balances due from Medini to other Animalcare Group companies. Another £370,000 from the consideration is also payable to Animalcare on June 30, 2019, related to a remaining intercompany balance owed.
Meanwhile, the remaining £230,000 from the deal's consideration is subject to certain revenue targets which may be achieved between July 2019 to June 2020 and will be payable July 2020.
"The sale of our wholesale division is consistent with our goal to focus on our higher-margin veterinary pharmaceuticals business," Animalcare CEO Chris Cardon said.
Animalcare will use proceeds for product development. In relation to the deal, the company expects to book an impairment loss including expenses of about £700,000 for the year ending Dec. 31.