Apiam increases equine footprint in regional NSW with new veterinary acquisitions

Expanding their network into a major agricultural centre, Apiam Animal Health (ASX: AHX) has acquired a major veterinary business in Dubbo – a central farming and equine region in New South Wales. 

The region in particular is one of the fastest growing in New South Wales with a current population of 40,000. The local economy is home to Fletcher International Exports which is one of the largest lamb and mutton exporters in the world and is also strongly supported by horse racing and horse breeding industries. 

Founded in 2002, the acquired Don Crosby Veterinary Surgeons business consists of two veterinary practices located in Dubbo and Narromine which employ 6 veterinarians that primarily service combination animals and equine clients. 

“The acquisition of Don Crosby Veterinary Surgeons in Dubbo fits with Apiam’s regional expansion strategy, and we have identified this location as particularly attractive given it is a fast growing regional population centre,” said Apiam Managing Director, Dr Chris Richards. 

“Don Crosby Veterinary Surgeons have an excellent market presence and reputation in the area and are led by a highly experienced team of veterinarians.”

“In this current environment, where companion animal spend is experiencing a strong underlying growth trajectory, we see significant opportunity to bolster our presence in this region and we welcome the Don Crosby Veterinary Surgeons team on board.” 

Don Crosby Veterinary Surgeons generated approximately $3.6 million of revenue in FY20 and has been acquired by Apiam for a total of $5 million with $3.5m to be paid in cash and $1.5m in AHX shares to be escrowed in 12-month and 24-month tranches. 

The practice will add to Apiam’s existing clinic in Dubbo and will retain all Don Crosby employees. 

Through FY20, Apiam Animal Health was largely unaffected by COVID-19 to report a 6% increase in revenue to $118.4m and a 32% increase in net profit to $4.2.