Greencross buys Queensland vet clinics

Greencross buys Queensland vet clinics

Veterinary group Greencross Limited (ASX:GXL) has completed the nearly $1 million acquisition of a majority stake in Care Veterinary Group.

Greencross said the acquisition, effective from today, should deliver it annualised revenue of nearly $1.2 million and ebit of $228,000, and be earnings per share accretive in FY12.

The remaining 49% of Care Vet group – which consists of two clinics in Toowomba, Queensland – will continue to be owned by the vendor.

Greencross managing director Glen Richards said the acquisition marks the establishment of the first of the company's regional joint venture initiatives.

He said the regional JV platform plans to “acquire, integrate and manage practices in the local region, providing a succession option for regional veterinary practices.”

Greencross also recently arranged to acquire three vet clinics in Victoria and one in Sydney for a combined $3 million, and completed the acquisition of a Melbourne animal hospital and Queensland clinic for around $1.2 million.

The company earned an FY10 profit of $2.9 million from 10% higher revenue of $50.5 million.

GXL shares stayed flat on Friday at $0.970.

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Tags Mergers and acquisitionsHealthcareGreencrossGlen RichardsASX:GXL

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