The Carr’s Group has completed the divestment of its Engineering Division, first announced in January this year, leaving the Group to focus on its global feedblock and animal health businesses.
Carr’s has completed the sale of the Engineering Division to Cadre Holdings for £75 million on a cash-free, debt-free basis. The transaction does not include the Chirton Engineering asset, which is being sold in a separate process. The Carr’s board intends to return up to £70m to shareholders, with the remainder to be “used for general corporate purposes and to fund strategic growth within Agriculture”, it says.
“The sale of the Engineering Division represents a critical milestone in Carr’s strategic transition to a pure-play global Agriculture business and commitment to maximise shareholder value. Operating under the revised and streamlined structure will enhance the Group’s financial and operational efficiencies and improve its long-term quality of earnings.”
The remaining business, now led by Josh Hoopes and his leadership team, has a new, focused Agriculture strategy. This is to improve operating margins across the global portfolio; deliver profitable commercial growth in the core business; and expand into new, extensive grazing-based growth geographies. Carr’s says the transformation continues to progress well.
“I am delighted to announce the successful completion of the sale process, which marks a significant milestone in delivering value for our shareholders,” states Carr’s Group chief executive David White. “We have made significant progress implementing our new Agriculture Strategy for the repositioned business, focused on driving profitable growth and expanding into new markets. With our streamlined operations, strengthened leadership team, and clear strategic direction, I am confident about the Group’s ability to deliver sustainable, profitable growth.”