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Veterinary services group, CVS, has disposed of its crematoria operations to Anima Care, a UK registered subsidiary of Anima Care Holding, the parent company of the pet aftercare division of Funecap Group, for £42.4m.
In light of the “attractive” approach by Funecap, CVS made the decision to offload its crematoria as it represented only 1.8% of its revenues and 3.2% of its adjusted EBITDA.
The group has exchanged contracts with Funecap for the disposal of its crematoria, with an expected completion date within the next five weeks.
Funecap will also provide clinical waste disposal and cremation services to CVS practices and clients following completion.
The capital generated from the divestment will provide additional firepower for continued selective investment in the UK and expansion in Australia, where the group can acquire assets at “attractive” multiples.
For the year ended 30 June 2024, the crematoria had revenues of £12m; adjusted EBITDA of £4.3m; profit before tax of £3.6m; and net assets with a carrying value of £23.6m.
It is expected that the crematoria will hit an adjusted EBITDA of approximately £4.3m and profit before tax of approximately £3.3m in the year ended 30 June 2025.
Meanwhile, CVS is forecasted to report a one-off profit on the disposal of around £32m in its FY25 accounts.
