- Animal health group Animalcare said Tuesday that it had sold Medini NV, its wholesale division, to Vetdis Holding, for a total of up to approximately £2.65m.

The sale comes as the company seeks to focus on its higher-margin veterinary pharmaceuticals business.

Under the terms of the deal, Animalcare had received an initial cash consideration of £0.33m and would receive a further of £1.72m from intercompany loan balances due from its wholesale division to other Animalcare group companies.

The company would receive a further £0.37m on 30 June 2019 from the remaining intercompany balance owed, and the balance of about £0.23m would be paid if specific revenue targets are achieved, Animalcare said.

The proceeds of the disposal would be used initially to not only improve the group's debt position, but also provide further support for product development, both organically and through strategic acquisitions, the company added.

'We believe that the consideration is a fair valuation for our wholesaling business and see Vetdis Holding as an ideal company to take the business forward,' said Chris Cardon, Chief Executive Officer of Animalcare.

At 8:06am: [LON:ANCR] Animalcare Group PLC share price was +4p at 174p

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