Completion of Strategic Acquisitions
Bendigo, July 4, 2022 AEST (ABN Newswire) - Apiam Animal Health Limited (ASX:AHX) today announces that it has completed settlement of the Victorian Equine Group and The Vet Practice Pty Ltd (The Vet Practice), (together, the Acquisitions) effective as at 1 July 2022.
The Acquisitions form part of Apiam's accelerated growth strategy and represent expansion in targeted regional areas that have been identified as having strong underlying veterinary market dynamics.
Victorian Equine Group adds a third high-performance cornerstone equine clinic to Apiam's clinic portfolio and provides the Company with a consolidated specialist equine presence down the East Coast of Australia. Further details of Apiam's equine veterinary growth strategy are detailed in its announcement and Investor Presentation lodged with the ASX on 19 May 2022.
The Vet Practice is a full-service companion animal clinic located in the fast-growing peri-urban area of Whittlesea (VIC), a region that is projected to experience strong increases in future animal numbers.
Further details are contained in Apiam's announcement lodged with the ASX on 23 June 2022.
Apiam's Managing Director, Dr Chris Richards said "both these acquisitions bring important strategic benefits to our Company as we look to target fast-growing regional veterinary markets to continue to drive business growth. We have also identified opportunities to drive improved earnings margins as we work to integrate these clinics. We are looking forward to welcoming onboard these high-performance veterinary teams".
The Acquisitions together will add $13.4 million in revenue to Apiam on a FY22 pro-forma basis and have been paid for via a combination of cash and the issue of 5.5 million Apiam shares.
Apiam remains committed to its accelerated growth strategy and continues to pursue high quality organic growth initiatives and acquisitions. Its target to double the revenue base of the Company to $300 million by FY24, as well as drive increased operating margin efficiency is on-track. Assuming a full-year contribution from both Victorian Equine Group and The Vet Practice increases Apiam's FY22 pro-forma revenue to approximately $178 million.
About Apiam Animal Health Limited
Apiam Animal Health Limited (ASX:AHX) is comprised of Australia's leading Production Animal and Mixed Animal veterinary practices. Apiam Animal Health incorporates over 150 highly experienced, industry leading veterinarians with expertise across the pig, dairy, feedlot, sheep, poultry, equine, and companion animal sectors, supported by an experienced administration, nursing, technical services and ancillary team. Apiam Animal Health is fully vertically integrated, including having veterinary wholesale, diagnostics laboratories, custom vaccines, logistics, and other ancillary services.
Apiam Animal Health Limited