The UK-based veterinary group, CVS Group plc, has announced the disposal of its Crematoria operations to Anima Care UK Limited, a UK-registered subsidiary of the Funecap Group. The deal, valued at £42.4m, represents a significant multiple of the adjusted EBITDA generated by the Crematoria.

• The Crematoria operations represent 1.8% of the Group’s revenues and 3.2% of the Group’s adjusted EBITDA.
• The disposal provides additional firepower for continued investment in the UK and Australia, supporting leverage below 2.0x.
• The capital generated from the divestment allows CVS to focus on its core veterinary and diagnostics services.

The Crematoria had revenue of £12.0m, adjusted EBITDA of £4.3m, and profit before tax of £3.6m in the financial year ended 30 June 2024. The Group expects to report a one-off profit of £32.0m on the disposal in its FY2025 accounts.

Anima Care UK Limited will provide clinical waste disposal and cremation services to CVS practices and clients following completion. The disposal has been facilitated by Funecap, a third-party European funeral services and infrastructure provider. The Group’s Chief Executive, Richard Fairman, stated that the disposal was part of the company’s strategy to focus on its core veterinary and diagnostics services. The capital generated from the disposal provides additional firepower for continued investment in the UK and Australia, supporting leverage below 2.0x. This allows CVS to focus on its core business while providing a high-quality end-to-end client service. The disposal is expected to be value accretive to the Group in due course, and the Group will continue to provide exceptional clinical services to its clients and their animals. Funecap Group, the parent company of Anima Care UK Limited, is a European leader in the funeral industry, with operations in six countries.

Funecap Group is a European leader in the funeral industry, with operations in six countries. It supports more than 400,000 families every year in its network of funeral infrastructure and service branches.

The Group employs approximately 9,000 personnel, including 2,400 veterinary surgeons and 3,300 nurses, and operates over 460 veterinary practices across the UK and Australia. The disposal of the Crematoria operations is expected to be completed within the next five weeks, following the exchange of contracts with Funecap. The Group’s Chief Veterinary Officer, Paul Higgs, stated that the disposal is an opportunity for CVS to focus on its core veterinary and diagnostics services, while continuing to provide high-quality clinical services to its clients and their animals. The disposal of the Crematoria operations is in line with the Group’s strategy to focus on its core business and provide a high-quality end-to-end client service. Benefits for CVS

• Additional firepower for continued investment in the UK and Australia.
• Supports leverage below 2.0x.
• Focus on core veterinary and diagnostics services.

Benefits for Anima Care UK Limited

• Provides clinical waste disposal and cremation services to CVS practices and clients.
• Opportunity to expand its pet aftercare services.

Key Points

• CVS Group plc has disposed of its Crematoria operations to Anima Care UK Limited for £42.4m.
• The Crematoria operations represent 1.8% of the Group’s revenues and 3.2% of the Group’s adjusted EBITDA.
• The disposal is expected to be value accretive to the Group in due course.

The disposal is an attractive example of the Group’s strategic focus on its core business, while providing a high-quality end-to-end client service.