CVS Group sells crematorium operations in £42m deal
CVS Group announced on Thursday that it has agreed to sell its crematorium operations to Anima Care UK, a subsidiary of the European funeral services group Funecap, for £42.4m in cash.
The AIM-traded veterinary operator said the sale represented a 10x multiple of adjusted EBITDA, and followed an unsolicited approach from Funecap.
It said the business being divested accounted for 1.8% of its revenue and 3.2% of adjusted EBITDA, with completion of the deal expected within five weeks.
Post-sale, Funecap would continue to provide cremation and clinical waste services to CVS practices and clients, ensuring service continuity.
CVS said the disposal would allow it to focus on core veterinary and diagnostics services while supporting investment opportunities in the UK and Australia, where it saw scope for value-accretive acquisitions.
The group was expecting a one-off profit of around £32m on the transaction in its 2025 accounts, and confirmed it would maintain leverage below 2.0x following completion.
At 1124 BST, shares in CVS Group were up 2.19% at 1,028p.
Reporting by Josh White for Sharecast.com.