1st Oct 2015 07:36
LONDON (Alliance News) - CVS Group PLC said that it bought veterinary services provider Alnorthumbria on Wednesday for GBP7.7 million.
Alnorthumbria comprises nine veterinary surgeries in the north east of England, and in its most recent financial year to March 31 made a pretax profit of GBP1.2 million and revenue of GBP5.7 million.
CVS said that it paid GBP6.6 million in cash on completion and will later pay GBP0.9 million in two equal annual tranches, provided that the revenue for the large animal and equine business acquired with Alnorthumbria remains above that achieved in its last financial year.
A further deferred consideration of GBP0.2 million will be payable if Alnorthumbria's total revenue in the two years following the acquisition is more than 111% above that achieved in the last financial year.
CVS is funding the acquisition through its existing bank facilities, and said that intangible assets and goodwill of approximately GBP6.7 million are expected to arise.
"Alnorthumbria is a strong fit with the group's existing operations, significantly increasing the group's presence in the north east and enhancing our large animal and equine business. As part of the CVS Group, Alnorthumbria is expected to benefit substantially from better purchasing power as well as overhead synergies," Chief Executive Simon Innes said in a statement.
Shares in CVS were trading up 0.6% at 694.83 pence early Thursday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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