National Vet Care fetches NSW acquisition as NZ deal falls through

National Vet Care fetches NSW acquisition as NZ deal falls through

It's a case of 'when one door closes, another opens' for National Veterinary Care (ASX: NVL), which has just acquired a new clinic in New South Wales.

The announcement coincides with news that one of two New Zealand clinic acquisitions slated in April fell through for NVL due to a condition around leasing not being met.

The company says the clinic was a smaller operation but would have been a strategic acquisition to grow NVL's Pet Doctors existing footprint in a specific area in New Zealand's South Island.

"However, NVL is pleased to announce that it has settled a clinic within an NVL geographic cluster in New South Wales.This clinic is larger than the New Zealand clinic that didn't proceed," the group said today.

National Vet Care acquired Pet Doctors for $23 million in September last year in a deal that included 23 clinics and two nurse training centres across the ditch. A few months later, its CEO and founder Thomas Steenackers won the inaugural Australian Young Entrepreneur Award hosted by Business News Australia.

It did not take long for the Gold Coast-based group to start building up its New Zealand presence. By the time its most recent New Zealand acquisition was settled in May, the company had 36 veterinary services businesses in the country.

The purchase price of that NZ deal combined with the latest NSW deal is set at $4.38 million, compared to the $3.71 million NVL placed on the two NZ businesses.

This amount will consist of $3.1 million in upfront payments and earnouts totaling $1.28 million.

"The new clinic in New South Wales, together with the recent New Zealand acquisition mentioned above, is expected to deliver aggregate annual revenue of approximately AU$3.82 million and an aggregate annual EBIT of approximately AU$0.83 million," NVL said.

With the deal the group has now acquired 99 integrated veterinary services businesses. In its half year results announced in February, the company forecast a 40 per cent rise in revenue for FY19 with an EBITDA margin of 14.5-15 per cent. 

At the time of writing NVL shares were down 0.92 per cent at $2.16.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Operating the board collaboratively, efficiently and securely
Partner Content
'Digitisation' and 'digitalisation' are two words that are frequently t...
OnBoard
Advertisement

Related Stories

Supply chain woes sees Kogan profit dive 58 per cent

Supply chain woes sees Kogan profit dive 58 per cent

Despite delivering record sales revenue for the first half of FY22,...

How Fable Food Co founder Michael Fox tricked himself back into business after failed venture

How Fable Food Co founder Michael Fox tricked himself back into business after failed venture

After his online footwear retail startup Shoes of Prey failed follo...

Myer's online sales surge 54 per cent but Omicron hampers post-Christmas performance

Myer's online sales surge 54 per cent but Omicron hampers post-Christmas performance

Although Myer (ASX: MYR) has reported a strong period of trade in t...

Demand for local travel sees Camplify flourish despite lockdowns

Demand for local travel sees Camplify flourish despite lockdowns

Despite widespread lockdowns restricting movement across Australia,...