Gold Coast’s National Veterinary Care to acquire 23 clinics in New Zealand, become market leader

A GOLD Coast listed company will become New Zealand’s largest companion animal network after buying 23 new clinics across the ditch.

National Veterinary Care Managing Director Tomas Steenackers with one year old Chevy at their Yatala clinic. Picture: Glenn Hampson

GOLD Coast company National Veterinary Care is set to become New Zealand’s largest companion animal network after buying 23 new clinics across the ditch.

In an announcement to the ASX this morning, NVL said it had funded the acquisition of Pet Doctors Group New Zealand, which also includes two training centres, partly through a share placement that raised $18 million.

“The acquisition materially increases NVL’s scale in NZ to become the market leader in the companion animal sector with a combined network of 33 clinics,” the announcement said

“The significantly larger business will enable NVL to leverage supplier deals and other procurement benefits to achieve growth in the managed services division which launched in NZ in August.”

NVL announced last month a 26 per cent boost to its revenue to $84.2 million, and a statutory net profit of $6.23 million — 41 per cent higher than FY17.

The company expected the acquisition would boost its annual earnings by $28.6 million (NZD$31.2 million).

In addition to funds from the placement, the purchase will be funded from existing cash reserves and debt, the company said.

Shares in the company were up 2.128 per cent to $2.40 at 10.30am today.

National Veterinary Care MD Tomas Steenackers with Bear. Picture: Mike Batterham

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NVL went into a trading halt yesterday as it completed the placement of about 8 million shares, which it said were oversubscribed at the offer price of $2.25 per share.

The shares issued via the placement represent about 13.5 per cent of NVL’s issued share capital prior to the offer.

CEO and managing director Tomas Steenackers said the Pet Doctors acquisition was the company’s largest since listing on the ASX in 2015.

“(It) is an excellent strategic fit with NVL’s existing business, in particular expanding its New Zealand footprint,” he said.

“The compatibility of systems between NVL and Pet Doctors will streamline the integration of the Pet Doctors clinics.

“We plan to deploy a number of NVL systems, including our wellness program, across all clinics within 120 days from settlement.

“This acquisition will continue to leverage the investment made in our systems and our people during FY18 and will also result in NVL having strong leadership and increased support office capabilities located in New Zealand to support the larger clinic network.”

The Placement, which was managed by Wilsons, is expected to settle next Tuesday, with allotment on Wednesday.

The Pet Doctors acquisition is subject to customary conditions and is expected to settle by November 1.

Completion of this acquisition will bring NVL’s total number of integrated veterinary services businesses to 92.