Apiam Animal Health Ltd (ASX:AHX) will acquire the Quirindi Veterinary Group (QVG) for $11.57 million to further strengthen Apiam’s production animal and rural veterinary services capabilities.
QVG is one of Australia’s largest rural veterinary groups, generating revenue of $12.2 million in FY16.
The acquisition is expected to be earnings accretive, and will be funded using Apiam’s existing bank facilities.
The consideration for the acquisition is a combination of 70% cash and 30% shares. Shares will be subject to escrow.
As part of the acquisition of QVG, Apiam will acquire proprietary technology to improve clinical efficiencies, data analysis systems for feedlot cattle and specialised assets for reproduction services.
Located in the Liverpool Plains in New South Wales, QVG provides veterinary services to large beef production systems throughout Australia through its business, Quirindi Feedlot Services.
It also provides equine (horse) reproduction services at its custom built centre near Scone in New South Wales, and runs a livestock and companion animal veterinary practice located in Quirindi.
This acquisition is in alignment with Apiam’s strategy to extend its position as a provider of expert veterinary, production, well-being and genetics services to the expanding production animal and mixed animal sectors.
This acquisition is Apiam’s first since its IPO in December 2015, and is part of the company’s ongoing program to invest in growth via synergistic acquisitions.
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