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Apiam Animal Health to acquire laboratory services business in A$16M deal

Apiam Animal Health Ltd. entered a deal to acquire Animal Consulting Enterprises Pty. Ltd., a company providing vaccine and laboratory services to animal producers.

The Victoria-based company is buying all the shares of ACE for a total consideration of A$16 million, which includes an initial consideration of A$12.4 million and a further A$3.6 million payable in 12 months and subject to performance thresholds.

The initial consideration includes A$9.9 million in cash and A$2.5 million in Apiam shares. The company plans to fund the cash consideration with Apiam's recently expanded acquisition facility.

Animal Consulting provides autogenous vaccines — which are custom made vaccines only available through the prescribing veterinarian — and diagnostic laboratory services for large pig, cattle, sheep and poultry producers in all the states of Australia. The company generated revenue of A$6.5 million in fiscal 2019.

Apiam said the acquisition is consistent with the company's long-term strategic plan and is aligned with the expansion of its product and services offerings. The Australian animal health company also noted the fast-growing nature of the autogenous vaccine business, as the products provide an alternative when commercial vaccines are not available or effective.

The acquisition is expected to be completed by Sept. 30, subject to conditions. Apiam said the deal will be EPS accretive for the company's shareholders in the first full year of acquisition.