BENDIGO, AUSTRALIA: Apiam Animal Health Limited has entered into agreements to acquire Fraser Coast Veterinary Services and North Hill Veterinary Clinic Pty Ltd for combined total consideration of $3.6 million.
Fraser Coast Veterinary Services (Fraser Coast) is comprised of three clinics and is predominantly a small animal business, with some exposure to equine and cattle.
Its three veterinary clinics are located in the regional towns of Maryborough, Howard and Childers within the Fraser Coast region of QLD, approximately 250km north of Brisbane.
It employs 25 staff including 9 veterinarians and has reported excellent financial growth, with revenue increasing approximately 25% over the past two financial years. The Fraser Coast region of QLD has been forecast to grow by 36% between 2019 and 20361.
Apiam has significantly expanded its regional QLD clinic presence over the past year, more than doubling its clinic presence in the region since June 2021. Apiam’s existing Gympie and Gladstone clinics are within working distance from the Fraser Coast clinics.
North Hill Veterinary Clinic (North Hill) is a single location companion animal practice, located in the regional NSW city of Armidale. The business employs 4 veterinarians and has also delivered strong financial performance in recent years. It is one of four small independent veterinary clinics in the Armidale area.
Apiam has recently expanded its presence in regional NSW with the acquisition of Agnes Banks Equine Clinic and also has nearby clinics in Dubbo and Quirindi.
Apiam’s Managing Director Dr Chris Richards said, “We are continuing to see strong growth in animal ownership and regional veterinary services in many locations. The acquisitions of Fraser Coast and North Hill have been targeted to capture this growth and have strategic benefits given our growing clinic networks in the QLD and NSW regions. Not only can we share skills and staff across our locations, but we can leverage our infrastructure from adjacent clinics.”
The acquisitions will add $5.2 million in revenue and $0.6 million in EBITDA to Apiam (on a FY21 basis).