MALMÖ, SWEDEN — Swedencare AB recently announced its acquisition of Custom Vet products Ltd (CVP), a UK-based manufacturer of soft chew products for pets, for about SEK 137.22 million ($12.78 million USD). Through the acquisition, Swedencare will strengthen its presence in the premium soft chew market throughout the animal health markets in the United Kingdom and Europe.

The acquisition consists of a cash amount of about SEK 110.67 million ($10.3 million USD) and an issue in kind of 620,095 shares of Swedencare, worth about SEK 26.56 million ($2.47 million USD), to CVP.

CVP formulates and manufactures high-quality veterinary products and supplements for cats and dogs that target specific health concerns, including urinary, bladder and joint health. CVP also has several private label and contract manufacturing partnerships, through which the company generates a majority of its sales. The company has recently expanded its manufacturing capabilities following high-volume contracts and increased demand.

CVP’s sales for its last financial year, from April 2021 to March 2022, were GBP 2.4 million ($2.77 million USD), with an EBIT [earnings before interest and tax] of GBP 1 million ($1.16 million USD).

“Through the acquisition of CVP, we can accelerate our plans to launch soft chews on the European markets,” said Håkan Lagerberg, chief executive officer of Swedencare. “This will both help us to add new products to our existing brands fast and also enable us to facilitate a European launch for some of our important US-based private label and contract manufacturing customers.”

Following the completion of the acquisition, CVP will continue to be led by David Ryder, founder and managing director of the company.

“CVP is delighted to be joining the Swedencare family of companies,” Ryder said. “CVP prides itself on making high quality soft chews and other products for the vet and pet industry. In recent months we have already started collaborating with some Swedencare’s subsidiaries.

“I firmly believe that the opportunity of being a part of Swedencare will provide superb synergy and bring fantastic opportunities to expand more rapidly into the UK and European markets,” Ryder added. “Swedencare’s proven international leadership, ethos and expertise directly in our area is something we are really excited about being a part of. We look forward to maximizing future growth by making superb products for our partners and customers.”

Under Swedencare, CVP will be rebranded within the company’s existing animal health brands.

“David and his team have done a fantastic job and has a unique competence in developing soft chews,” Lagerberg said. “Together with our own competences from Vetio and Garmon we are creating an important player for the European soft chew market. CVP will be renamed VetioUK as the first entity in Europe for Vetio which now means that we have own manufacturing on both continents.”

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