17th Feb 2026 15:06
(Alliance News) - Kelso Group Holdings PLC said on Tuesday it purchased GBP1.8 million worth of shares in CVS Group PLC, as the listed acquisition vehicle praised the veterinary company's "consistent" growth.
The London-based acquisition vehicle said it bought 130,000 shares of CVS at an average price of GBP13.87 in "recent weeks".
Kelso said that since CVS's listing on AIM in 2007, "its market capitalisation has grown to just under GBP1 billion, representing one of London Stock Exchange's most consistent long-term growth stories".
CVS Group is a provider of veterinary services in the UK and Australia, and currently operates about 470 practices in the two countries, employing around 2,300 veterinary surgeons and over 3,000 nurses.
Kelso said that CVS's current valuation "presents a compelling opportunity" given the company's "strong balance sheet, with net debt of around GBP160 million as at December 31, alongside forecast earning before interest, taxes, depreciation, and amortisation of around GBP140 million for the year to June 30 2026 and robust cash generation".
The lease capitalisation under the 2016 International Financial Reporting Standards would also support "moderately higher leverage" which could be used "both to enhance shareholders returns and to mitigate potential interest from private equity fund investors", Kelso said.
The acquisition vehicle also believes that the upcoming completion of the UK Competition & Markets Authority's market investigation into veterinary services for household pets "should not present a huge impediment to CVS's business model in the UK".
Kelso Chair Nigel Knowles said: "We believe disciplined capital allocation will be increasingly important in unlocking future shareholder value. Kelso is a supportive long-term shareholder, and we look forward to engaging constructively with management over time. Our objective is to see CVS continue to develop as a UK-listed success story and to ensure that shareholders fully benefit from this potential."
Kelso shares were down 6.9% to 2.70 pence each in London on Tuesday afternoon. CVS Group shares were up 1.9% at 1,410.00 pence.
By Martin Miraglia, Alliance News reporter
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