Lindahl assists Swedencare AB (publ) with a strategic acquisition in North America and with directed new share issues

The Vetio Group, which operates in development and manufacturing of dietary supplements, dermatological products and pharmaceuticals for the animal health market, has its headquarters in St. Louis, Missouri, and conducts development and manufacturing in Jupiter, Florida, and in Montreal, Quebec. The Vetio Group is the leading animal health contract development manufacturing organization (CDMO) in North America. Closing of the transaction occurrs on 1 July 2021. The purchase price amounts to approximately 181.5 million USD and consists of a cash amount of approximately 179 million USD and an issue in kind of 184,190 shares in Swedencare to the selling members of management (representing 2.3 million USD) with payment as contribution in kind through transfer of units in one of the target companies. The group will continue to be run by existing management members, which by way of the issuance of new shares will become minority shareholders in Swedencare.

Further, Lindahl advises Swedencare on a directed share issue of 11,954,200 shares, corresponding to approximately 1,150 MSEK. The shares in the directed cash share issue is subscribed for in equal parts by the German listed company Symrise AG and a Swedish financial investor. The proceeds raised by Swedencare in the cash share cash issue will be used to partially finance the acquisition of the Vetio Group. Symrise AG is a leading actor in taste development for the global animal feed market and will after the share issue have an ownership of approximately five percent of the shares in Swedencare. Swedencare’s intention is to, with Symrise AG as a strategic owner, be able to accelerate its business, primarily in animal feed collaborations, and, with the new financial investor, gain access to a global network and expertise in M&A and business development.

Lindahl’s team consisted of Johan Herrström, Annika Brandt, Henrik Nilsson, Victoria Volny, Christian Sundén, Jesper Fredriksson, Johanna Svensson, André Persson and Pontus Söderberg. Lindahl worked on the acquisition together with Wiggin and Dana in New York and McMillan in Toronto and Montreal, all members of the same global network, TerraLex.

About our client Swedencare

Swedencare develops, produces, markets and sells premium products in the global and fast-growing market for animal health products for cats, dogs and horses. Swedencare’s product groups are represented on approximately fifty markets around the world and are sold through subsidiaries in the Nordics, United States, France, Spain, Greece, Great Britain and Ireland, and through an external distribution network. Swedencare’s shares are listed on Nasdaq First North Growth Market. Through the acquisition of the Vetio Group, Swedencare gains a strong position in the manufacture and development of premium brands for the animal health market in the US and Canada.