CIC Holdings PLC has acquired Asiavet Lifesence Ltd., a company specializing in the import of veterinary products.
The acquisition will further strengthen CIC’s position as a leading specialist in providing internationally recognized veterinary care products for the poultry industry as well as a range of companion animal care products.
The CIC Veterinary Care operation in FY22 performed well, with the two key verticals of poultry care and pet care products performing well.
Benefiting from the revival of the country’s poultry sector, CIC’s Veterinary Care activity increased its market share. CIC remained a dominant player in the rapidly growing pet care market. In a related development, Nexgard Tick Protection Solution has been introduced as a new addition to the pet care range.
In FY22, CIC Livestock Solutions generated Rs. 12.6 billion in revenue compared to 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 clients in the veterinary care sector.
Regarding the new acquisition, CIC said the first tranche of the review of Rs. 148.3 million representing seven times profit after tax (as audited) for the financial year April 1, 2021 to March 31, 2022 (financial year 1), less the holdback in the amount of Rs 30.3 million was settled on August 31, 2022 and the sum withheld is to be released on the realization of inventories and receivables held by Asiavet Lifesence as of August 31, 2022.
The second and third installments of the consideration for said acquisition will be calculated and paid as follows:
(a) an amount equal to one-half of the profit after tax (as audited) for the fiscal year April 1, 2022 to March 31, 2023 (fiscal year 2), which exceeds the profit for fiscal year 1 multiplied by seven, which sum must be paid within 14 days of finalizing the audit; and
(b) an amount equal to half of the after-tax profit (as audited) for the year April 1, 2023 to March 31, 2024 (year 3), which exceeds the profit for year 2 multiplied by seven, which amount must be paid within 14 days of finalizing the audit