BENDIGO, AUSTRALIA: Apiam Animal Health Limited has entered into a binding agreement to acquire the assets of Scenic Rim Veterinary Service and Boonah Veterinary Hospital for total consideration of $16 million, a news release said.
Scenic Rim Vets operates a leading state-of-the-art equine clinic in Beaudesert (QLD), as well as a mixed animal clinic in Boonah (QLD). The equine clinic is located within close proximity to several large equine studs in South-East Queensland and readily accessible from the major performance horse training centres.
Apiam’s Managing Director, Dr Chris Richards said, “Scenic Rim Vets will be the third equine operated by Apiam and the acquisition is consistent with our strategy of operating best in class veterinary services through large high-performance centres being supported with smaller regional referral clinics in adjacent growth areas.”
Leading equine practice Scenic Rim Vets is privately-owned with a total team of 13 veterinarians as well as an experienced support team. It was founded in 2003 and has grown to be one of the largest providers of equine veterinary services in Queensland, with a very strong track record and industry reputation.
It has a business focus on expertise in reproduction and surgical services for performance horses as well as providing general veterinary services and animal diagnostics. The equine clinic is in Beau desert, Queensland-a location with a large equine population and many equine breeding facilities.
Scenic Rim Vets have a very highly skilled team, bringing two market leading equine veterinarians that have advanced surgical skills, and an experienced team of reproduction vets.
The Scenic Rim Vets acquisition will add $6.9 million in revenue to Apiam, on a FY21 proforma basis. The acquisition of this leading equine clinic and mixed animal practice is expected to be earnings accretive for Apiam shareholders in the first full year of ownership, and the implied acquisition earnings multiple is in-line with previous Apiam acquisitions.
The acquisition will be funded via a cash payment of $14.4 million (90% of the acquisition consideration) and an issue of 1.72 million Apiam ordinary shares to the vendors (10% of the acquisition consideration).
Apiam has also extended its acquisition facility with its lender NAB, so that it has the necessary headroom available to continue executing on its acquisition pipeline as opportunities arise.