Located in Bendigo, VEG is one of the largest equine clinics in Victoria and is the go-to referral hospital for surgeries due to their highly respected roster of equine vets.
In total, the business employs 25 full time staff which includes 12 veterinarians and has a satellite clinic at
The acquisition of VEG follows a similar model to Apiam's acquisitions of Scenic Rim and
"We are pleased to announce these strategic acquisitions that further reflect our commitment to providing leading equine veterinary services while continuing our strategic regional expansion into fast-growth veterinary markets," said Apiam Managing Director, Dr
"VEG will enable us to provide industry leading specialist surgical and reproduction skills to the broad range of equine markets we service in Victoria. Apiam now has a leading referral cornerstone equine clinic location in each major
In addition to VEG, Apiam has also announced the acquisition of Romsey Veterinary Surgery, a mixed animal clinic in the
VEG and Romsey Veterinary Surgery are forecast to deliver a combined
Total consideration for the Acquisitions will be
Key personnel have also entered into long-term employment agreements while the cash component will be funded from existing cash flow and Apiam's finance facility.
While the bulk of Apiam's 22% revenue growth has been coming from companion animals, the Company has also been increasing its equine footprint in response to rising animal standards in the equine industry. Heightened attention to equine welfare has resulted in an increase in demand at Apiam's equine hubs while the cyclical calendar of the Thoroughbred breeding industry has increased Apiam's seasonal revenue through downtimes of feedlot businesses.
Continued investment in prize money from major racing States has had a flow on effect to Thoroughbred sales and spending where Apiam has positioned itself ideally as
This increased spending has been reflected in the major Thoroughbred yearling sales of 2022 where global investment in the Australian industry surged, sending the median sale price of yearlings up at all major sales.
View the Major Australian Yearling Sales Data - 2022 in link below*.
Between those sales, more than 2,000 racehorses changed hands at those median sale prices which is prompting further investment into both Thoroughbred horse racing and Thoroughbred breeding in
Their acquisition of VEG is set to also benefit substantially from the closure of Caulfield Racecourse as a Thoroughbred training facility in 2021. This saw a major influx of horses to regional areas. VEG is likely to benefit from Apiam's extensive Victorian network of over 30 clinics and any further acquisitions of equine or mixed animal clinics in the months and years ahead.
"Apiam has a strong acquisition pipeline with several opportunities currently in the due diligence phase," added
"Further acquisitions are expected to be finalised in the coming months and Apiam is well-funded to execute on these opportunities as we make progress towards our goal of doubling our revenue to
*To view Yearling Sales Data, please visit:
https://abnnewswire.net/lnk/709W50HG
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