Swedencare expands into new veterinary pharma segment through UK acquisition

Swedencare has gained a strong foothold in the animal health specials market by acquiring a leading player in the UK.

The Swedish firm, which posted record sales in 2024, has acquired 100% of the shares of Summit Veterinary Pharmaceutical for £30 million ($39M/€36M).

The UK company is a customized specialty pet pharmaceuticals provider through more than 5,500 veterinary clinics nationwide, with additional reach in Hong Kong. The deal is expected to be closed on 1^st April 2025.

With a strong and growing product portfolio, primarily for small animals and a recent expansion into equine, Swedencare’s addition of Summit boosts its presence in the animal health specials market.

Potential European expansion

“With this exciting acquisition, we are entering a new segment of the industry that offers ongoing growth opportunities in the UK market and the potential for expanding the business into the EU and other markets in the coming years,” says Håkan Lagerberg, CEO of Swedencare.

Along with a cash consideration of £27 million ($35M/€32M) and an issue-in-kind of 978,119 shares, Swedencare will also pay an earn-out of up to £15 million ($19M/€18M) contingent on certain conditions being met by 1^st April 2027.

Summit generated annual revenue of £7.3 million ($9.5M/€8.7M) for the 2024 calendar year, along with operational earnings before interest, taxes, depreciation and amortization (EBITDA) of £2.7 million ($3.5M/€3.2M), resulting in an EBITDA margin of 37%.

Solid foundations

For Summit, joining Swedencare will enable access to its patented soft chew technology, which is in high demand and has been developed over a decade to offer customers a premium solid oral dosage.

The Oxfordshire-based company was founded in 2009 by Steve Organ, a Canadian who founded a similarly named company in his homeland. The Canadian operation continues and is not part of the Swedencare acquisition.

Organ will lead the UK business for the next 2 years and become a shareholder in Swedencare when the deal closes.

“The Summit team and I are excited to join Swedencare’s growing platform,” Organ says. “Together, Swedencare and Summit will leverage their shared commitment to innovation by delivering best-in-class veterinary medicines and elevate the standard of care in veterinary medicine globally.”

In a similar recent move, Musti Group’s Norwegian subsidiary announced the purchase of 40% of Petrus Veterinærer, a veterinary company that operates 2 vet clinics in Oslo, giving the Finnish company exposure to the Norwegian vet market.