CVS has acquired the Albavet Group in a deal reported to be worth more than £11 million.
Albavet employs 34 veterinary surgeons and more than 150 staff across three separate businesses – 11 veterinary surgeries, the VetShare buying group and an instrumentation business trading under the name of VETisco.
The veterinary surgeries are based in the Fife area (four sites), Glasgow (one site), Nottingham (one site), the Stoke-on-Trent area (four sites) and Wallington, Surrey (one site).
VetShare has more than 400 members operating from around 500 surgeries across the UK. The VETisco instrumentation business is a small distribution business that makes a small loss.
In the year to 31 October 2014, the group had turnover of approximately £6.6 million, of which £5.5 million was generated by the surgeries.
Earnings before interest, tax and depreciation and amortisation was around £800,000 and profit before tax was £600,000 (both after adjusting for rent that will be payable on properties owned by the Albavet Group pre-acquisition, but which will be leased post-acquisition).
The total consideration payable to the shareholders of Albavet is £11.3 million, including costs. This figure is subject to adjustment based on the working capital and indebtedness of Albavet at the date of acquisition.
In addition, CVS will acquire net debt of approximately £0.1 million with Albavet. Intangible assets and goodwill of approximately £11.6 million are expected to arise on completion of the acquisition.