GENUS ACQUIRES HERMITAGE’S GENETIC ASSETS AND ENTERS INTO A STRATEGIC PARTNERSHIP

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23rd February 2017

Genus plc

(‘Genus’ or the ‘Group’)

 

ACQUISITION AND STRATEGIC PARTNERSHIP

Genus, a leading global animal genetics company, and Hermitage, one of the longest established pig breeding companies in Europe, are pleased to announce that they have signed an agreement to enter into a strategic partnership covering the supply of porcine genetics in several markets.

PIC, Genus’s porcine division, will acquire the genetic rights and intellectual property of Hermitage. Hermitage will also become a strategic supply chain and distribution partner for PIC. In addition, PIC will acquire certain Hermitage customer relationships in various geographies including Russia, the US and several European countries. The transaction is subject to a number of closing conditions which are expected to be fulfilled by the end of March 2017.

The partnership combines PIC’s genetics expertise and quality, and Hermitage’s supply chain network and   operational   excellence.   This   combination   will   strengthen   PIC’s   ability   to   deliver   genetic improvement in Europe and provide customers of both PIC and Hermitage with access to top-tier genetics and optimal technical and health services.

Hermitage was established in 1958 in Ireland and is one of the longest established porcine breeding and genetics companies in Europe.  Over the years, Hermitage  has  grown  into  a  multinational  porcine breeding company serving pig producers in Europe and other international markets with high-health breeding stock. Hermitage’s infrastructure includes nucleus farms and boar studs in Ireland and across Europe, as well as multiplication partners in key international territories.

Commenting on the transaction, Karim Bitar, Chief Executive of Genus, commented:

”The partnership with Hermitage is an ideal fit with our porcine strategy. It will provide Genus with the opportunity to accelerate genetic improvement by combining the PIC and Hermitage gene pools. In addition, Hermitage’s strong supply chain and customer-service oriented team will strengthen our ability to serve pig producers efficiently and reliably.”

Ned Nolan, owner of Hermitage, added:

This  is  an  exciting  step  for  Hermitage,  as  we  join  forces  with  a  global  pioneer  in  our  field.  Our partnership with PIC will allow the continued use of the Hermitage gene pool to provide enhanced genetics to our global customer base. Hermitage shares PIC’s values of pioneering genetic improvement for customers and we look forward to collaborating with PIC’s team.”

For further information, please contact:

Genus                                                                                                                          Tel: +44(0)1256 345970

Karim Bitar, Chief Executive

Stephen Wilson, Group Finance Director

Buchanan UK                                                                                                             Tel: +44(0)207 466 5000

Charles Ryland /Vicky Hayns

Investec Ireland

Tommy Conway                                                                                                        Tel: ++353 (01) 4210358

This announcement is available on the Genus website www.genusplc.com

About Genus

Genus  creates  advances  to  animal  breeding  and  genetic  improvement  by  applying  biotechnology and sells added value products for livestock farming and food producers. Its technology is applicable across all livestock species and is currently commercialised by Genus in the in the dairy, beef and pork food production sectors.

Genus’s  worldwide  sales  are  made  in  seventy  countries  under  the  trademarks  “ABS”  (dairy  and  beef cattle)  and  “PIC”  (pigs)  and  comprise  semen  and  breeding  animals  with  superior genetics  to  those animals currently in production. Genus’s customers’ animals produce offspring with greater production efficiency, and quality, and use these to supply the global dairy and meat supply chain.

The Group’s competitive edge has been created from the ownership and control of proprietary lines of breeding animals, the biotechnology used to improve them and its global supply chain, technical service and sales and distribution network.

With headquarters in Basingstoke, United Kingdom, Genus companies operate in thirty countries on six continents, with research laboratories located in Madison, Wisconsin, USA.

About Hermitage

Hermitage was established in 1958 by the Nolan Family. Pedigree Landrace and Large White lines were purchased  internationally  and  developed  and  selected  with  the  support  of  Irish  Government  Central Test Stations  in  the  60s,  70s  and  80s.  Over the last 30 years Hermitage Genetics has  expanded  its Landrace, Large White, Duroc, Pietrain and Maxgro lines, becoming a pig breeding company dedicated to efficient and profitable pig production worldwide. Hermitage top class production facilities support customers across Europe, North America and Asia.

Hermitage  has  developed  a  science-based  breeding  program  that  drives  genetic  progress  focused on traits that are of economic importance to the pig producer. Hermitage now tests over 30,000 pigs per year for lean efficient growth and collects data from more than 22,000 pure-bred sows at the genetic nucleus level. This data is analysed by Hermitage’s proprietary BreedDirect BLUP software program and offered by Hermitage to customers through an online data portal.

Hermitage Group was advised on the transaction by Investec Corporate Finance in Dublin.

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