Jan 29 2022
Vimian Group acquires leading companion animal health specialty pharmaceuticals company in the UK
Vimian Group has today signed an agreement to acquire Bova Holdings Limited (Bova), a leading companion animal health specialty pharmaceuticals company in the United Kingdom (UK). The company offers customised specialty pharmaceuticals for companion animals and had annual revenues the past twelve months of GBP 8.1 million and an EBITDA of GBP 2.9 million. On a full-year basis for Bova’s financial year 2021 ending March 2022, Bova is expected to have annual revenues of GBP 8.9 million and an EBITDA of GBP 3.6 million, corresponding to an EBITDA margin of 40 percent. The purchase price (enterprise value) amounts to GBP 50.5 million and an additional, possible amount of maximum GBP 25.5 million vested over a three-year period and subject to EBITDA hurdles.
Vimian Group’s Specialty Pharma segment Nextmune has today signed an agreement to acquire Bova Holdings Limited. Bova is a specialty pharmaceuticals company that develops, manufactures and commercialises customised pharmaceuticals for the companion animal health market.
Established in 2017, Bova offers specialty pharmaceuticals covering a wide and expanding range of product classes. The dosage forms include injections, capsules, tablets, oral liquids, pastes and transdermal creams. The company has more than 100 specialty pharmaceutical formulations for companion animals. All raw materials and products are compliant with quality standards set out by regulatory authorities and the pharmaceuticals industry. Bova serves veterinary clinics and hospitals across the UK and in ten additional European markets through an online ordering system with deliveries within 24 hours. The company has a 1,800 square meter production facility in London covering sterile and non-sterile products, and employs 64 professionals within R&D, quality control, sales and manufacturing.
“The acquisition of Bova marks an important milestone in our strategic ambition to add new therapeutic areas to Vimian’s Specialty Pharma segment. Bova holds a unique position in the UK as the leading innovator in specialty pharmaceuticals for companion animal health and enjoys a strong financial position with high growth and high margins having grown with more than 70 percent over the past year. Tailormade and customised specialty pharmaceuticals represent an attractive and fast-growing niche of the animal health market. We see significant opportunities for continued strong growth in the medium to long-term perspective in UK as well as in Europe and the US”, says Magnus Kjellberg, CEO of Vimian’s Specialty Pharma segment Nextmune, and continues:
“Nick Bova is an impressive entrepreneur, and I am delighted that he and the team at Bova decided to join us on our growth journey.”
The founder and CEO of Bova, Nick Bova, will continue to lead the company as part of Nextmune.
“We are pleased to join Nextmune and Vimian’s home for entrepreneurs. We are dedicated to improving animal welfare by developing novel and innovative specialty pharmaceuticals in close collaboration with veterinarians. Through this partnership we can realise our vision to become the leading companion animal health specialty pharmaceuticals company globally”, says Nick Bova, founder and CEO of Bova.
The purchase price amounts to GBP 50.5 million and an additional, possible amount of maximum GBP 25.5 million vested over a three-year period and subject to EBITDA hurdles. For illustrative purposes, to achieve the maximum additional consideration, Bova must generate an EBITDA exceeding GBP 9.8 million by the financial year ending March 2025.
The acquisition will have a positive impact on Vimian Group AB's earnings per share in the current financial year. Bova is expected to be consolidated into Vimian’s Specialty Pharma segment on or around 4 February 2022. The acquisition is financed with available funds.