Acquisition of The Vet Practice
Bendigo, June 23, 2022 AEST (ABN Newswire) - Apiam Animal Health Limited (
ASX:AHX) today announced that it has that it has entered into an agreement to acquire The Vet Practice Pty Ltd (The Vet Practice), a full-service companion animal clinic located in Whittlesea, Victoria (the Acquisition).
The total consideration for the Acquisition is $8.3 million, to be paid as $7.1 million in cash consideration and $1.2 million in Apiam shares.
Apiam's accelerated growth strategy to deliver $300 million revenue by FY24 remains on-track with the acquisition of The Vet Practice expected to deliver further organic growth following integration into the Apiam network.
The Vet Practice is located in the fast-growth peri-urban region of Whittlesea, on the outer northern suburbs of Melbourne. In recent years the City of Whittlesea has been one of the fastest growing municipalities in Australia and it is forecast to continue to grow rapidly - by 55.9% between 2022 and 2041.
Apiam's Managing Director, Dr Chris Richards said "the acquisition of The Vet Practice aligns with our strategy to enter regional veterinary markets where rapid population growth is driving strong increases in local animal numbers. The fact that The Vet Practice is also a leading companion animal clinic with a full-service offering means its services can be leveraged across our adjacent clinic network".
"Apiam continues to deliver strong organic growth across our companion animal services and it is acquisitions such as The Vet Practice that are expected to contribute to our accelerated growth strategy to achieve $300 million in revenue by FY24 and deliver increased operating margins."
The acquisition of The Vet Practice is expected to add ~$7.9 million in revenue and ~$1.33 million in normalised EBITDA to Apiam on a FY22 proforma basis.
Apiam has previously reported as part of its strategy to double revenue by FY24 that it is targeting reported revenue in excess of $150 million in FY22. Assuming a full-year contribution from The Vet Practice, Apiam's proforma FY22 revenue would increase to approximately $178 million.
Overview of The Vet Practice
The Vet Practice is a full-service companion animal veterinary clinic, that operates an animal hospital and canine rehabilitation centre from its Whittlesea premises. Services offered include regenerative medicine, hyperbaric medicine, arthroscopy, hydrotherapy and endoscopy as well as general pet healthcare.
The Vet Practice is owned by two veterinarian partners employing 48 staff including 12 veterinarians and 20 veterinary nurses.
Key Acquisition terms
Settlement of the Acquisition is expected to occur on 1 July 2022, in conjunction with Apiam's settlement of Victorian Equine Group (as announced to the ASX on 19 May 2022).
Shares issued to the vendors of The Vet Practice will be subject to a minimum escrow period of 12- months, with 50% subject to an escrow period of 24-months. Key personnel have entered into 3-year employment agreements with Apiam and are committed to leading the future growth of the business.
About Apiam Animal Health Limited
Apiam Animal Health Limited (ASX:AHX) is one of Australia's leading rural veterinary businesses made up of more than 80 Veterinary Clinics and 330 highly experienced veterinarians as part of a team of over 1300 dedicated professionals. The majority of Apiam's vet clinics, production animal, and allied businesses have been around a long time, many of them decades and are spread Australia wide reaching into the heart of dairy, beef, sheep and pig country and the regional towns that are at their centre.
Apiam Animal Health is committed to providing best in class care for its clients, the animals in their care and the communities where people live and work. The Company's purpose, to enrich the lives of animals, people and communities, is applied across all businesses from vet clinic to production animal consultancy, logistics and laboratory with vets and allied staff sharing expertise and specialist knowledge. Apiam is focused on meeting the needs of its clients and shaping the future of the industry to deliver best practice animal health and welfare at a local level and nationally.
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