Australian Young Entrepreneur of the Year 2018 Tomas Steenackers' (pictured) listed National Veterinary Care (ASX: NVL) has announced the acquisition of a new business.
NVL expects to complete the $5 million acquisition of the 'veterinary procurement business' by 30 September 2019.
The acquisition will complement its existing management services business United Vets Group to service a larger share of the $3 billion veterinary industry.
NVL's managed services numbers will increase by approximately 18 per cent to 500 following this acquisition.
The business is expected to deliver annual revenue of around $2.4 million and an aggregate annual earnings of approximately $0.9 million.
"This is a really exciting acquisition for our business which will significantly boost our managed services business," says managing director Steenackers.
"The addition of this new business is expected to drive members, as well as NVL's owned clinics."
Once complete, NVL estimates that it will represent around 24 per cent of the Australian and New Zealand small animal market, through its owned clinics and independent managed services members.
"I am also proud to announce that this acquisition marks the 100th integrated veterinary services business that NVL has acquired since its inception in 2015," says Steenackers.
"This is an extremely rewarding milestone to reach for our board, management team and all staff of NVL.
This latest acquisition is the second for NVL in as many months as the company continues to consolidate the Australian market.
In July the company acquired a clinic in New South Wales. The announcement coincided 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.
Business News Australia