Carr’s Group has sealed a £75m deal to sell its Engineering Division to Cadre Holdings, Inc., a move set to unlock significant value for shareholders and sharpen the company’s focus on its Agriculture business.
The transaction, which includes Carr’s Engineering Limited in the UK and its US counterpart, positions Cadre as the new custodian for the division’s employees and customers. Carr’s plans to return up to £70m of the proceeds to shareholders through a tender offer, with the remaining funds earmarked for general corporate purposes.
STRATEGIC SHIFT FOR CARR’S
The sale marks a pivotal moment in Carr’s strategy to streamline its operations and prioritise its Agriculture division, which produces specialist livestock supplements sold across 20 countries. Tim Jones, Non-Executive Chairman, described the deal as “transformative,” adding, “The Agriculture business is particularly well-positioned for growth, with strong product offerings, strategic market presence, and a clear focus on delivering shareholder value.”
Chief Executive David White echoed these sentiments, highlighting the company’s renewed ability to focus on global opportunities in Agriculture. “This step leaves us able to concentrate on delivering profitable growth and developing our specialist product portfolio,” he said.
SIMPLIFYING THE BUSINESS
The decision to sell the Engineering Division follows a review of Carr’s operational structure, which identified inefficiencies in managing two distinct divisions. The Engineering Division, which manufactures vessels, precision components, and remote handling systems for nuclear and defence sectors, has shown robust profitability. However, Carr’s Board deemed this the right time to capitalise on its value.
By streamlining operations, Carr’s aims to operate as a pure-play global Agriculture business, leveraging its market-leading brands and refining its management focus.
WHAT’S NEXT?
Completion of the transaction is expected in the first half of 2025, subject to regulatory and customer clearances. Alongside the deal, Carr’s is progressing with the separate sale of Chirton Engineering and continues to optimise its property portfolio, having already sold six non-core properties for £4m.
The Group’s Agriculture strategy includes improving operating margins, driving growth in core markets, and expanding into new regions. This renewed focus, coupled with strong market fundamentals and growing global demand for beef, positions the Agriculture division as a key driver of future growth.
With a strong financial footing post-sale, Carr’s is poised to deliver substantial shareholder returns while advancing its strategic goals.