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- Apiam Animal Health (AHX) enters a $16 million binding agreement to acquire Scenic Rim Vets
- The acquisition will involve Scenic Rim Vets’ assets, including an equine clinic in Beaudesert and a mixed animal clinic in Boonah in Queensland for a cash payment of $14.4 million and 1.72 million Apiam ordinary shares
- The new acquisition is said to add $6.9 million in revenue to Apiam, on a FY21 pro-forma basis
- The company expects to settle the Scenic Rim Vets acquisition today
- Apiam Animal Health was up 4.35 per cent, trading at 96 cents at 3:30 pm AEST
Apiam Animal Health (AHX) has entered into a $16 million binding agreement to acquire Scenic Rim Vets.
Scenic Rim Vets operates an equine clinic in Beaudesert and a mixed animal clinic in Boonah in Queensland. The equine clinic, positioned close to several large equine studs, is readily accessible from the major performance horse training centres and is considered one of the largest providers of equine vet services in Queensland.
The acquisition will be funded through a cash payment of $14.4 million, representing 90 per cent of the acquisition consideration, and an issue of 1.72 million Apiam ordinary shares.
The new acquisition is said to add $6.9 million in revenue to Apiam, on a FY21 proforma basis, and is expected to be earnings accretive for Apiam shareholders within the first full year of ownership.
Apiam currently operates two dedicated equine centres in Victoria, as well as several equine facilities that form part of its 61 clinics and business locations. The Scenic Rim Vets acquisition will result in Apiam owning over 25 vet clinics, including three registered specialists dedicated to equine veterinary services.
Apiam says Southern Queensland is an important growth region for the company, given it recently completed the acquisition of three other mixed animal veterinary practices in this region in Q4 FY21.
The company says it will be open to opportunities to leverage resources between the two Scenic Rim Vets clinics and Apiam’s other Queensland clinics to deliver further growth.
“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,” Apiam’s Managing Director, Dr Chris Richards said.
The company expects to settle the Scenic Rim Vets acquisition today.
Apiam Animal Health was up 4.35 per cent, trading at 96 cents at 3:30 pm AEST.
