Transformative acquisition of highly attractive and complementary business aligned to Animalcare’s growth strategy
Acquisition of Randlab
On 3 January 2025, Animalcare completed the acquisition of Randlab, a privately-owned group of companies focused on the Equine veterinary market. Randlab operates primarily in Australia with subsidiaries in New Zealand and the UAE, while exporting to 14 countries.
The rationale
We are constantly reviewing opportunities to deliver on our strategic goals of expanding our geographic reach, acquiring products and brands that enhance our existing portfolio and building our new product pipeline. The Randlab acquisition meets all three of these goals.
Materially grows the Animalcare Equine business
Randlab represents a significant opportunity for Animalcare to build a leading franchise in the global Equine market, which is forecast to grow at 8.3% CAGR1. Equine accounts for less than 4% of total animals in major animal health markets2 compared to cats and dogs, and 2.8% of sales in Europe across all species3. As a result, this has, historically, been an underinvested sector, with relatively low levels of recent innovation in new products.
We believe that the acquisition of Randlab gives Animalcare the opportunity to be positioned as a “partner of choice”, leveraging Randlab’s equine expertise through its highly experienced and well-established technical and commercial team, to secure strong brand loyalty and customer relationships in the equine community.
- Equine Healthcare Market Size and trends 2024–2030, Grandview Research.
- SC Analytics Europe, North America, Japan, Australia.
- Animal Health Europe 2022.
% Revenue by segment LTM to 30 June 2024
- Companion Animals
- Production Animals
- Equine
Pro-forma revenue derived from ANCR for the 12 months ended 30 June 2024 plus Randlab Pty to 30 June 2024 (assumes GBP:AUD 1.95).
Enhances Animalcare’s product portfolio
The Randlab portfolio encompasses an extensive range of core equine generic pharmaceuticals and some over-the-counter products. In total, there are 58 brands in 10 product categories, the largest two being Gastric Ulcer and Joint which together account for 61% of total revenue. Over 80% of the 58 brands are registered veterinary prescription medicines and owned by Randlab, enhancing Animalcare’s revenues derived from owned brands and reducing the overall exposure to third-party distribution products.
Opportunity to build significant Equine franchise
Randlab significantly strengthens Animalcare’s presence in the attractive Equine veterinary market, which is expected to represent in excess of 20% of Group sales on a pro forma basis (to 30 June 2024). Moving forward, we see opportunities to build upon this:
- Commercial synergies – over time, and subject to regulatory requirements, we expect to deliver incremental revenues from launching existing Animalcare products through the Randlab network and vice versa.
- New product development – Randlab is currently working on a small pipeline of new products (two currently in development, two proposed). We will assess further opportunities to build upon this pipeline and to include European registrations, where appropriate, while leveraging Randlab’s expertise to maximise the potential of Animalcare’s current equine developments (e.g. VHH antibody programme).
- Upside beyond standalone plan – accelerate growth of our Equine franchise through a mix of bolt-on acquisitions, licensing and partnering opportunities.
Opportunities to build Companion Animal footprint in Asia Pacific
Randlab expands the Group’s geographical footprint in the important Australian, New Zealand and UAE Equine markets, providing the infrastructure and opportunity to accelerate growth within Animalcare’s Companion Animal business. Such opportunities include partnering, strategic investment and/or acquisition of existing Companion Animal-focused businesses. Over time, commercial synergy opportunities should arise as we establish our Companion Animal footprint.
People and Integration
Randlab was founded in 2004 by Angelis Vasili who, as CEO, led and built a sustainable, profitable and cash-generative business with an impressive track record in a market that places great importance on knowledge and expertise of equine health and wellbeing. Following completion of the acquisition, Angelis stepped down as CEO and left Randlab. Animalcare and Angelis have, subsequently, agreed a contract for consultancy services which will allow ongoing access to Angelis, notably to support building and delivery of the Randlab product development pipeline.
Following completion, we are confident we have in place an experienced leadership team to facilitate a smooth transition and deliver our future growth ambitions. Bruce Bell, a former Elanco and Virbac Country/General Manager, who joined Randlab in 2020 as Assistant General Manager, succeeds Angelis Vasili as General Manager. Separately, Brad Saunders, a former long-standing colleague of Bruce at Virbac, joined on completion as Finance and Operations Director, to lead on the finance and supply aspects of the business.
Randlab operates with a small, highly experienced team of around 25 people, of which seven are in customer-facing roles, with 100% focus on Equine, driving strong brand loyalty and customer relationships in the equine market. This total is expected to remain largely unchanged post-acquisition.
Alongside Bruce and Brad, we aim to preserve the focus on equine and an entrepreneurial operating environment. Therefore, our integration plans and potential future move into Companion Animals are not expected to impact or disrupt Randlab. Recognising that any acquisition means change for an organisation, our integration ethos will be focused on making necessary and positive change for Randlab and our new colleagues.