The Agnes Bank clinic in NSW will help cornerstone Apiam’s broader strategic push into equine services in regional markets.

For leading veterinary and animal health practice Apiam (ASX:AHX), 2021 has been a transformational year for its strategy to build an expansive network across regional Australia.

This morning, the company took the latest step forward on that mission, with the acquisition of Agnes Banks Equine Clinic – a leading NSW-based practice that will form part of Apiam’s cornerstone equine clinic network.

Apiam shares rose in morning trade following the announcement, as investors continue to back its national expansion strategy.

 

Strategic expansion

The deal for ABEC will add to Apiam’s fast-growing equine network, which complements its existing portfolio of more than 60 veterinary clinics nationwide.

ABEC employs 14 vets (including three registered specialists in Equine Surgery) and has a reputation “as a market leader within the Australian equine veterinary industry”, Apiam said.

Located just outside of Sydney, the clinic serves a diversified equine client base including sport horses, pleasure horses and racehorses.

Commenting on the acquisition, Apiam CEO Dr Chris Richards said that like animal health industries, the equine sector has benefitted from strong growth trends in the wake of the pandemic.

Most importantly, “cornerstone” clinics such as ABEC will give Apiam the ideal launching pad to expand into equine service across its regional network.

“These cornerstone clinics feature state-of-the-art facilities and equipment operated by experienced vets, including some with registered specialist qualifications,” Richards said.

The ABEC clinic joins other leading cornerstone clinics in Apiam’s portfolio, including the group’s acquisition of Scenic Rim in June — a state-of-the-art equine clinic that’s situated in close proximity to a number of large equine studs in South-East Queensland.

To acquire the clinic, Apiam will pay a total consideration of $4.8m in a cash and share deal.

The deal consists of a  cash payment of $4.1 million (85% of the acquisition consideration), with the 15% balance of $0.7m consideration in Apiam shares.

Key ABEC personnel have also entered into extended employment agreements with Apiam, and remain committed to the growth of the clinic for the long term, the company said.

This article was developed in collaboration with Apiam, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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