Australia’s largest veterinary group Greencross Limited (GXL) is pleased to announce that it has entered into agreements to acquire the Maitland Veterinary Hospital and the Rutherford Veterinary Clinic. Total cash consideration, including deferred payments, to be paid for this acquisition equals $2,823,069. The acquisition is expected to deliver annualised revenue and EBIT of $3.312m and $0.650m respectively. The acquisition is expected to be earnings per share accretive in the 2012 fiscal year. Both clinics are situated in Maitland, New South Wales and are well established businesses that have been in operation for over 38 years. Both vending veterinarians have entered into employment agreements with Greencross ranging from 1 to 3 years in duration. Greencross in pleased to also announce that it has entered into an agreement to purchase a further 16.31% of the shares in the Animal Emergency Centre Pty Ltd (‘AEC’). This will take the Company’s total ownership in the AEC from 59.00% to 75.31%. The total consideration for the AEC shares equals $856,165. The consideration for the AEC shares is to be settled by the issue of 668,879 Greencross shares to the vendors.
Greencross was established in 2003 and has grown to become Australia’s leading veterinary services company through the acquisition and integration of 73 practices around Australia. Greencross’s strategy is to continue to consolidate the fragmented veterinary services industry in Australia and is focused on delivering exceptional veterinary medicine and levels of care to its patients. The company’s vision is to be the practice of choice for employees, clients, patients and shareholders.
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