The Company has announced a transformative £75 million sale of its Engineering Division to Cadre Holdings, Inc., marking a strategic pivot toward becoming a pure-play agriculture business.
The deal, representing 7.1 times the division’s FY24 Adjusted EBITDA, involves the sale of Carr’s Engineering Limited (UK) and Carr’s Engineering (US), Inc. on a cash-free, debt-free basis. The transaction is expected to complete in the first half of 2025, subject to customer and regulatory approvals.
The Company plans to return approximately £70 million of the net proceeds to shareholders through a tender offer, with remaining funds allocated to general corporate purposes. This capital return reflects the Board’s commitment to maximising shareholder value following an extensive strategic review.
The divested Engineering Division, which manufactures vessels, precision components and remote handling systems for nuclear and defence industries, generated approximately £51.1 million in FY24 revenue. Operating across six sites in the UK, US, and Germany, the division maintained a healthy order book of £54 million as of August 31, 2024.
The sale excludes Chirton Engineering, a North Tyneside-based precision machining specialist, which is subject to a separate ongoing sale process.
Post-transaction, the Company will operate as a streamlined agriculture specialist under new global leadership led by Josh Hoopes as CEO of the Agriculture business. The division manufactures research-proven livestock supplements including feed licks, blocks, bagged minerals, and boluses, selling to over 20 countries under five market-leading brands.
The agriculture focus aligns with positive industry forecasts, with the OECD projecting beef consumption growth to 76Mt between 2020-2029, whilst the FAO predicts an 8% increase in global beef protein availability through 2031.
The Company expects UK market conditions to continue improving in the near term, whilst US market contraction will end in 2025 with cattle herd rebuilding to commence thereafter.