GREENCROSS ACQUIRES CLINICS AND OPENS NEW STORES
Written on the 7 May 2014 by Laura Daquino
GREENCROSS Limited (ASX: GXL) has today announced its acquisition of four veterinary clinics and the opening of three retail stores, including Caboolture Veterinary Clinic and a Chermside Petbarn store.
The Brisbane-based company, which merged with Sydney-based pet retailer Petbarn earlier this year, has spent a total of $3.7 million on acquiring the practices which will be rebranded and restructured as Greencross Vets.
The practices will fall under the Greencross partnership model, which GXL executive chairman Glen Richards (pictured) has previously said offers “an employment choice for young vets and succession plan for old vets”.
GXL CEO Jeffrey David says the announcement is representative of the company being on the fast-track, as it further cements its position as Australia’s largest pet services business.
“We continue to successfully execute our strategy to expand our clinic and store network. In financial year 2014 to date, we have grown our veterinary clinics from 93 to 107.
“In aggregate, including the acquisitions announced today, our acquisitions for this financial year have delivered $15.6 million of annualised revenue and $2.8 million of annualised EBIT.”
Vendors of Caboolture Veterinary Clinic, Caulfield South Veterinary Clinic (VIC), Riverside Veterinary Clinic (SA) and Urban Jungle Veterinary Clinic Miranda (NSW) will reportedly enter into employment agreements for between one and two years.
Meanwhile, the Chermside Petbarn, Double Bay Petbarn (NSW) and a new Animates store in Nelson (NZ) will take the total GSX pet retail store count to 133. David says the company expects this figure to grow to 145 by the end of December.