Avacta Group plc
Acquisition of YorkTest Veterinary Services Limited
Avacta Group plc ("Avacta" or the "Company"), which provides innovative tools
for life science research and molecular diagnostics, is pleased to announce the
acquisition of YorkTest Veterinary Services Limited ("YTVS") a York based
veterinary laboratory services business.
The maximum consideration is £825,000 payable in cash with £700,000 payable at
completion and a further deferred element of up to £125,000 subject to
completion accounts.
YTVS provides a complete allergy testing service to veterinary practices in the
UK, EU and worldwide. Their technology enables the analysis of blood samples
from dogs, cats and horses to assist in the diagnosis and treatment of adverse
reactions to foods, pollens, insects and moulds. YTVS has established itself as
a leading animal allergy testing provider by maintaining rigorous quality
control and high levels of customer support and now provides its services to
around 55% of UK veterinary clinics and has distributors and partners in the
EU, Middle East and Far East.
Avacta is developing technology products, services and intellectual property
with both human and veterinary diagnostics applications. The lower regulatory
hurdles associated with the veterinary market allows for near term
opportunities in this market. Avacta has been working with YTVS to develop a
new veterinary diagnostics technology, MIDAS, with broad utility across a range
of animal healthcare including allergy testing, which it expects to launch
later this year. Today's acquisition of YTVS by Avacta brings a well
established and highly regarded UK business in the veterinary support services
sector into Avacta, and provides the Company with an important route to market
for its new veterinary diagnostic technology products and services.
YTVS had unaudited revenues for the year ended 31 December 2008 of
approximately £1,038,000 (2007: audited £982,000) and an unaudited operating
profit of £171,000 (2007: audited £191,000). The unaudited net assets of YTVS
at 31 December 2008 were £221,000 (2007: audited £170,000).
Alastair Smith, Chief Executive Officer, Avacta, commented:
"I am absolutely delighted that YTVS is joining the Group. The development of
veterinary diagnostic products and services is a key theme in Avacta's growth
strategy and YTVS provides the Group with a well established and well respected
route to market as well as a very experienced management team with in depth
knowledge of the veterinary market requirements worldwide. We are committed to
maintaining the current business of YTVS and its very high level of quality and
customer satisfaction and to adding to their product range with new and
innovative products and services delivered by Avacta."
Janice Hogg, Managing Director, YTVS, added:
"YorkTest Veterinary Services have been engaged in the research and development
of commercial serological tests to assist veterinary surgeons in the diagnosis
and treatment of allergies since 1999. The Company has grown from a small start
up to become the leading specialist veterinary allergy laboratory in the UK. I
am very proud of our reputation and this will be further enhanced by becoming
part of the prestigious Avacta group. This means that not only will we continue
to deliver the most comprehensive support programme to our veterinary customers
worldwide but also increase our portfolio with innovative services that will
ensure animals achieve better health."
9 February 2009
Enquiries:
Avacta Group plc Tel: 0870 835 4367
Alastair Smith, Chief Executive Officer
Tim Sykes, Chief Financial Officer
www.avacta.com
Daniel Stewart & Company plc Tel: 020 7776 6550
Lindsay Mair/Charlotte Stranner
www.danielstewart.co.uk
Novum Securities Limited Tel: 020 7562 4700
Henry Turcan
Haggie Financial LLP Tel: 020 7417 8989
Nicholas Nelson/Kathy Boate Nicholas.nelson@haggie.co.uk
Notes to Editors:
About Avacta:
Avacta was spun-out from the University of Leeds in 2004 by its current
management team as a biophysics company, with the aim of combining the
disciplines of physics and biology to develop innovative technologies and
expert technical services to address needs in the pharmaceutical, defence and
clinical diagnostics markets. Avacta has a core bio-analytical technology
development programme addressing the needs of the biopharmaceutical sector to
fully characterise their new products at the earliest stage in their
development to reduce the risk of late stage failure. High value solutions in
clinical diagnostics are also being targeted for these core bio-analytical
technologies and for Avacta's trace gas analysis technology as well as
opportunities in industrial and military sensing applications. A successful and
growing part of the Avacta business model is its technical services arm, Avacta
Analytical Limited, which is focused on providing leading edge contract
research to the biopharmaceutical and healthcare/personal-care materials
sectors. Avacta listed on AIM in August 2006 through the reverse takeover of
Readybuy plc which changed its name to Avacta Group plc.