- Apiam Animal Health (AHX) Acquires Two Veterinary Businesses for Combined Cash and Securities Consideration of $13.75 Million
- The first is Victorian Equine, which provides various services for horses and will add a third core equine clinic to Apiam’s portfolio.
- Apiam also acquires Romsey Veterinary Surgery, a mixed animal and horse clinic located in a major growth corridor in Victoria
- Apiam says the purchases align strongly with its growth strategy to double revenue by FY24 and expand its presence on Australia’s east coast
- Shares of the company ended the day 7.48% in the green to close at 79 cents
Apiam Animal Health (AHX) has announced new acquisitions as part of its growth strategy to double its revenue to $300 million by FY24.
The company has entered into binding agreements to acquire Victorian Equine Group and Romsey Veterinary Surgery for a combined consideration of $13.75 million.
Chief Executive Dr Chris Richards said the acquisitions reflect the company’s commitment to providing leading equine services while expanding into fast-growing veterinary markets.
Apiam is a vertically integrated animal health company that currently operates two specialist equine clinics based in Queensland and New South Wales.
Based in Bendigo, Victoria, Victorian Equine provides surgical, diagnostic, breeding and hospital services for horses. It operates the Bendigo Equine Hospital and an outpatient breeding service in the Goulburn Valley and other stud areas.
Victorian Equine would be strategically positioned to capture large equine populations as breeders increasingly establish their operations in regional Victoria, as opposed to training facilities in the capital.
Additionally, Victorian Equine is expected to generate $5.5 million in FY22 revenue after several years of growth.
“Victorian Equine will enable us to provide cutting edge surgical and specialist skills to the wide range of equine markets we serve in Victoria,” said Mr Richards.
Importantly, this acquisition adds a third core equine clinic to Apiam’s portfolio and provides it with a leading specialist equine presence on the east coast of Australia.
Romsey Veterinary Surgery
Romsey is a mixed animal and equine clinic located in the Melbourne-Bendigo corridor that primarily helps pets and animals from nearby farms.
The clinic employs 16 people, including six veterinarians, and has projected revenue of $3.3 million for FY22.
“Romsey Vet Surgery adds an important location for mixed animals in the fast-growing corridor between Melbourne and Bendigo,” Mr Richards added.
Financing and acquisition conditions
The $13.75 million will be paid in cash and stock, with $9.8 million to be paid in cash and $4 million in Apiam stock.
Apiam expects the acquisition of Romsey to settle on June 1, 2022, while the purchase of Victorian Equine will settle on July 1.
Shares of the company ended the day 7.48% in the green to close at 79 cents.