CO-OP Animal Health Ltd (CAHL) is in discussion with the Irish Veterinary Union (IVU) about the sale of its 50 per cent stake in Vetlink, the largest distributor of veterinary products in Ireland. The other 50 per cent is owned by veterinary shareholders who are IVU members.
Vetlink was set up as a separate trading division within CAHL in 1984 on the understanding that once the company was in a position to buy the CAHL 50 per cent stake, it would do so. The intention was that Vetlink would eventually be fully owned and controlled by vets.
CAHL, owned by three farmer controlled food groups (Dairygold 50 per cent, Avonmore 25 per cent, and Waterford Foods 25 per cent), already trades in veterinary products but not in ethical products and has a turnover of £14 million. It operates on a profit margin of about 2 per cent.
Vetlink is based in Tullow, Co Carlow, and operates from the same premises as CAHL. It generated sales of £7 million in 1995. Pre tax profit amounted to £130,000. Commenting on the proposed sale, CAHL's chief executive, Mr Pat McCarthy, said the price would be negotiable. Based on these figures, it could be in the region of £500,000.
