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- Apiam Animal Health (AHX) is acquiring two veterinary businesses for a combined cash and scrip consideration of $13.75 million
- The first is Victorian Equine, which provides various services for horses and will add a third cornerstone equine clinic to Apiam’s portfolio
- Apiam is also acquiring Romsey Veterinary Surgery which is a mixed animal and equine clinic located in a major growth corridor in Victoria
- Apiam says the purchases strongly align with is growth strategy to double revenue by FY24 and expand its presence on Australia’s East Coast
- Company shares have ended the day 7.48 per cent in the green to close at 79 cents
Apiam Animal Health (AHX) has announced new acquisitions as part of its growth strategy to double revenue to $300 million by FY24.
The company entered binding agreements to acquire Victorian Equine Group and Romsey Veterinary Surgery for a combined consideration of $13.75 million.
Managing Director Dr Chris Richards said the acquisitions reflect the company’s commitment to providing leading equine services while expanding into fast-growth veterinary markets.
Apiam is a vertically integrated animal health business which currently operates two dedicated equine cornerstone clinics based in Queensland and New South Wales.
Victorian Equine
Located in Bendigo, Victoria, Victorian Equine provides surgical, diagnostic, reproduction and hospital services for horses. It operates the Bendigo Equine Hospital and ambulatory reproduction service in Goulburn Valley and other stud regions.
Victorian Equine is reportedly strategically positioned to capture large equine populations as breeding operators are increasingly establishing their operations in regional Victoria as opposed to capital city training facilities.
Moreover, Victorian Equine is set to generate $5.5 million in revenue for FY22 following several years of growth.
“Victorian Equine will enable us to provide industry leading surgical and specialist skills to the broad range of equine markets we service in Victoria,” Mr Richards said.
Importantly, this acquisition adds a third cornerstone equine clinic to Apiam’s portfolio and provides it with a leading specialist equine presence across Australia’s East Coast.
Romsey Veterinary Surgery
Romsey is a mixed animal and equine clinic located in the Melbourne to Bendigo corridor that primarily helps companion animals and animals from nearby farms.
The clinic employs 16 staff, including six veterinarians, and has projected revenue of $3.3 million in FY22.
“Romsey Veterinary Surgery adds an important mixed animal location in the fast growth corridor between Melbourne and Bendigo,” Mr Richards added.
Acquisition funding and terms
The $13.75 million will be paid through a mix of cash and shares, with $9.8 million to be paid in cash and $4 million in Apiam shares.
Apiam expects the Romsey acquisition to settle on June 1, 2022, while the Victorian Equine purchase will settle on July 1.
Company shares ended the day 7.48 per cent in the green to close at 79 cents.
