Apiam Animal Health (ASX: AHX) has continued with its strategic expansion in the equine market with the acquisition of high-performance NSW practice, Agnes Banks Equine Clinic (ABEC).
ABEC was established in 1989 and has established itself as the leading provider of dedicated equine services. The clinic is located approximately 70km from Sydney and 5km from Hawkesbury to be well located to capture a diversified equine client base including sport horses, pleasure horses, racehorses and broodmares.
The business employs 14 equine vets (including 3 registered specialists in Equine Surgery and Medicine) and has a reputation as a market leader within the Australian equine veterinary industry.
ABEC will add $4.7 million in revenue and $0.75 million in EBITDA to Apiam on a FY21 basis. The acquisition will be funded via a cash payment of $4.1 million and $0.7m to be paid in Apiam shares (50% escrowed for 12 months, 50% for 24 months).
The clinic has a strong financial track record, delivering 15.8% revenue growth between FY19 – FY21.
The addition of ABEC takes Apiam’s broader portfolio to 64 veterinary locations Australia-wide and capitalises on the equine veterinary sector which has grown rapidly, benefitting from positive industry tailwinds and COVID-19 related demographic impacts. Targeting this industry follows on from our acquisition of Scenic Rim Veterinary Services in Queensland earlier in the year for Apiam to now have two high-performance equine cornerstone clinics that will form a base for continued expansion within the equine sector in each respective state.
The full media release can be downloaded below.
