GREENCROSS TO OPEN A CLINIC EACH MONTH

Written on the 7 October 2010

GREENCROSS TO OPEN A CLINIC EACH MONTH

VETERINARY company Greencross Limited (GXL) plans to acquire one clinic a month after securing a $23.87 million debt funding facility for the next three years with the Commonwealth Bank (CBA).

Greencross managing director Glen Richards says the funding comes as the business moves from 12 months of consolidation to a phase of rapid expansion.

“For the last 12 months we’ve been restructuring internally, we finalised our IT platform and other gardening-type work, and from the HR side with the right people and management team we’re more than ready to acquire new clinics and integrate them,” he says.

“Our intention is that we’re capable of acquiring at least one practice a month and that’s what we’ve experienced – we acquired Caloundra and Brookvale in August, and on Thursday we will get four general practices and three emergency centres in Melbourne.

“But if we do one every three months that’s OK, and if we do one a month and we’re comfortable with that, we’ll do it.”

The company has also raised more than $3 million through a recent placement and share purchase plan, while CBA will also provide a $5 million standby facility in case of further acquisitions. The company will transfer its existing debt from National Australia Bank (NAB).

“The new funding arrangement secured with the CBA best suits the overall needs of Greencross. I am most pleased with the terms negotiated between the two parties,” says Richards.

GXL shares rose 1.47 per cent today to $0.665, but are still well below their 12-month high of $0.98.


Latest News

ENTREPRENEUR'S NEW VENTURE SWEET AS 'HONEE'

A MELBOURNE entrepreneur hailing from the food tech scene has launched a new venture to change the face of beauty....

WATER VENTURE TAKES ON THE PLASTIC SCOURGE

DAMIEN Stone has a thirst to build the world's biggest social enterprise in a clean fight against the plastic ...

BUNNINGS BOSS JOHN GILLAM QUITS WESFARMERS

THE man behind Bunnings' home improvement domination has resigned from his role in charge of the retailer.

...

NOVOTEL SALE REFLECTS HOT BUYERS' MARKET

AFTER two decades in the hands of a private syndicate, The Novotel Melbourne Glen Waverley has been sold to the Sy...

Related News

HOW MCDONALD'S AUSTRALIA REDISCOVERED ITS INNOVATIVE SPIRIT

MCDONALD'S is such a ubiquitous part of the Australian landscape today that it is easy to forget how it change...

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter