NVC BOLSTERS NSW NETWORK WITH $1.2M ACQUISITION
Written on the 17 June 2016
NATIONAL Veterinary Care (ASX:NVL) has added another clinic to its network for $1.2 million.
The Brisbane-based company acquired a practice in NSW, taking the total number of veterinary clinics and associated businesses under ownership to 40.
The purpose-built practice was established in 1994 and delivers annualised revenue of $1.48 million and EBIT of $28,000.
The total consideration was funded through debt and free cash, including $24,000 in deferred cash consideration. The acquisition is expected to be earnings per share accretive in FY17.
It follows the completion of three acquisitions announced earlier this year, including a clinic in Queensland which was settled for $45,000 in May.
More than half of the company's clinics are located in geographical clusters in south-east Queensland and Victoria, with almost 500 staff members.
NVC estimates the pet care industry in Australia was worth $8 billion in 2013, with the company's addressable market valued at $2.9 billion.
The company has outlined plans to tackle the market by expanding its Wellness Program, as well as further acquisitions as the 'fragmented' industry consolidates.
The clinic in NSW will be integrated into NVC's systems and processes.
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