Genus PLC Acquisition of 51% of In Vitro Brasil (9423E)
February 16 2015 - 2:01AM
UK Regulatory
TIDMGNS
RNS Number : 9423E
Genus PLC
16 February 2015
For Immediate Release 16 February 2015
Genus plc
Genus to acquire 51% of In Vitro Brasil S.A.,
the world's leading commercial provider of bovine in-vitro
fertilisation technology
Genus plc ("Genus"), a leading global animal genetics company,
today announces that it has signed an agreement for the acquisition
of 51% of the share capital of In Vitro Brasil S.A. ("IVB") through
ABS, its bovine genetics business. IVB is a leading biotechnology
company focused on the production of bovine embryos through
in-vitro fertilisation ("IVF") and the provision of associated
services. IVB is based in Brazil and also operates in a number of
countries including the US, Colombia and Uruguay.
Genus will acquire a 51% interest in IVB for a total investment
consideration of BRL 20 million (GBP4.6m*) in cash, including an
upfront capital commitment. Genus expects to acquire the remaining
49% of IVB's share capital in the first half of 2018 by exercising
a call option. The selling shareholders also have a matching put
option. Consideration for the remaining 49% is conditional on
certain performance conditions and is capped at BRL 49 million
(GBP11.2m*). The completion of the transaction is subject to a
number of closing conditions, which are expected to be fulfilled in
the first quarter of 2015. In 2014, IVB had global revenues in
excess of GBP4 million.
The transaction will strengthen Genus's global leadership in the
development and delivery of differentiated genetics in the bovine
industry through the introduction of IVF technology. With Genus's
support and established global presence, IVB will be well
positioned to meet the growing demand for IVF in the dairy and beef
industries, enabling farmers to accelerate genetic improvement in
their herds.
IVB was established in 2002 by Dr. José Henrique Fortes Pontes,
IVB's CEO, to meet the need for bovine IVF technology from
commercial dairy and beef producers in Brazil. Today, IVB is the
world's leading commercial provider of bovine IVF embryos with a
leading presence in Brazil, the world's largest bovine IVF market,
and a growing presence in other Latin American countries and the
US. As well as its presence in dairy, IVB has also built a
significant presence in the commercial beef producer segment,
having secured contracts with some of Brazil's leading beef
producers.
Commenting on the transaction, Genus's CEO Karim Bitar said:
"The acquisition of IVB provides Genus with a significant
opportunity to accelerate the rate of genetic improvement we are
able to offer our customers. IVB's proven success in delivering IVF
solutions to commercial dairy and beef producers will enable us to
offer our extensive customer base the ability to leverage genetic
improvement on both the male and female side of their herds through
superior in-house technology."
Saskia Korink, COO of Genus ABS, added:
"We are looking forward to welcoming the highly skilled and
talented IVB partners and employees into ABS. With the growing
adoption of IVF in the bovine industry, we look forward to working
closely with IVB to offer our customers a comprehensive genetic
solution with real world economic benefits."
Dr. José Henrique Fortes Pontes, who will continue to lead the
business within Genus ABS, said:
"The transaction combines the world's leading bovine IVF
technology company with the leading bovine genetics company. We
share common values in being pioneers in the industry with a strong
focus on translating technical capability into value for customers.
IVB's technical knowhow and ABS's genetic improvement capability
and strong global presence provide an excellent platform for growth
and a real opportunity to deliver demonstrable value to large dairy
and beef producers worldwide."
For further information please contact:
Genus plc Tel: 01256 345970
Karim Bitar, Chief Executive Officer
Stephen Wilson, Group Finance Director
Buchanan Tel: 0207 466 5000
Charles Ryland /Sophie McNulty
This announcement is available on the Genus website
www.genusplc.com
About Genus
Genus creates advances to animal breeding and genetic
improvement by applying biotechnology and sells added value
products for livestock farming and food producers. Its technology
is applicable across all livestock species and is currently
commercialised by Genus in the dairy, beef and pork food production
sectors.
Genus's worldwide sales are made in seventy-five countries under
the trademarks "ABS" (dairy and beef cattle) and "PIC" (pigs) and
comprise semen and breeding animals with superior genetics to those
animals currently in production. Genus's customers' animals produce
offspring with greater production efficiency, and quality, and use
these to supply the global dairy and meat supply chain.
Genus's competitive edge has been created from the ownership and
control of proprietary lines of breeding animals, the biotechnology
used to improve them and its global supply chain, technical service
and sales and distribution network.
With headquarters in Basingstoke, United Kingdom, Genus
companies operate in over twenty-five countries on six continents,
with research laboratories located in Madison, Wisconsin, USA.
About IVB
IVB is the world's leading provider of IVF and associated
services to the livestock industry.
IVB was founded in 2002 to meet the growing demand for bovine
IVF services. Today IVB produces in excess of 250,000 bovine
embryos annually. IVB is headquartered in Mogi Mirim, Brazil, and
operates through wholly owned laboratories, joint ventures and
franchise agreements.
* Note: Exchange rate at close of 12 February 2015 of 4.3663
BRL/GBP assumed throughout communication
This information is provided by RNS
The company news service from the London Stock Exchange
END
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