Acquisition of Harbour Veteri

RNS Number : 3295J

CVS Group plc

02 December 2008

 



For Immediate Release

2 December 2008

CVS Group plc

('CVS' or the 'Company')

Acquisition of Harbour Veterinary Group

CVS, one of the UK's leading providers of veterinary services, is pleased to announce the acquisition of a Hampshire based practice, the Harbour Veterinary Group ('Harbour').  Harbour consists of a veterinary hospital located in Portsmouth together with four stand-alone small-animal surgeries in Southsea, Waterlooville, Havant and Hayling Island.

 The Portsmouth Veterinary hospital is accredited under the Royal College of Veterinary Surgeon's (RCVS) Practice Standards scheme as 'Tier 3', whilst all of its branches are accredited 'Tier 2'. The acquisition of this business represents a significant strengthening of the Company's presence on the south coast providing many opportunities for collaboration. The hospital will also act as host to an out-of hours emergency service, providing cover for both Harbour and other neighbouring practices.

CVS will assume all management responsibilities for Harbour following completion of the acquisition including the current employees, which comprise 14 professional vets amongst a total staff of 60. In line with CVS' strategy, administration will be consolidated within CVS' central facilities, providing scope for cost synergies and benefits following the acquisition. 

In the year ended 30th April 2008, Harbour achieved Profit Before Tax of £419,000 on turnover of £2.83 million. The value of the fixed assets of Harbour to be acquired is £102,000. 

The consideration for this practice has been met jointly from bank facilities and internal cash.

The Harbour acquisition, together with the acquisition of Joel Veterinary Clinic Ltd also being announced today, takes CVS' portfolio to 161 veterinary surgeries which includes 12 veterinary hospitals, in addition to 6 veterinary laboratories and 1 pet crematorium. In line with CVS' stated strategy, the acquisition of Harbour offers further opportunities for cost efficiencies, revenue growth and improved shareholder returns. 

Commenting on the acquisition, CVS Chief Executive Simon Innes said:  

'We are pleased to be acquiring one of the largest privately owned small animal practices in the country. The acquisition of Harbour Veterinary Group provides CVS with a strong foothold in the Portsmouth area, further expanding our growing national network. We look forward to working with Harbour to bring all the benefits of CVS ownership, allowing veterinary practices to concentrate on clinical excellence and client service whilst generating strong returns for CVS shareholders.'

  Contacts:

CVS Group plc Simon Innes, Chief Executive Paul Coxon, Finance Director	01379 644 288
Buchanan Communications Richard Oldworth Ben Romney	020 7466 5000
Panmure Gordon Richard Gray Andrew Godber	020 7459 3600

 

END

 

 

ACQFKDKNOBDDQBK