For immediate release 7 October 2008
CVS Group plc (“CVS” or “the Group”)
CVS Group acquires Rossendale Pet Crematorium
CVS, one of the UK’s leading providers of veterinary services, is pleased to announce the acquisition of Rossendale Pet Crematorium Limited (’the crematorium’).
The acquisition, which includes the freehold property from which the crematorium operates, has been financed wholly from the Company’s cash flow, continuing to demonstrate the ability of the Company to finance its acquisition pipeline directly from internally generated cash.
Based in Lancashire, within a thirteen acre site, the crematorium and Memorial Gardens were established in 1967, aiming to provide bereaved pet owners with the best and widest options in coping with the death of their pets.
CVS will assume all management responsibilities for the crematorium following completion of the acquisition including the nine current employees.
In the year ended 31 December 2007, the crematorium achieved an Operating Profit of £136,000 on turnover of £490,000 and had gross assets of £503,000.
The acquisition of a crematorium will be a great enhancement to CVS’ existing portfolio of 151 veterinary surgeries and 4 veterinary laboratories. Further broadening the veterinary services offering, the acquisition provides a new division which, in line with CVS’ stated strategy, will allow the Company to continue to generate stronger returns through vertical integration of key suppliers to the veterinary market.
CVS owned practices send minimal levels of work to the crematorium, therefore providing the opportunity for CVS surgeries to cascade work there post completion, where logistically suitable.
Commenting on the acquisition, CVS Chief Executive Simon Innes said:
“The acquisition of Rossendale Pet Crematorium is an important addition to the CVS group of businesses as well as a natural progression for our Company. In line with all acquisitions to date, it offers a high quality business with dedicated professionals.
The potential for cost synergies means that we will enhance our shareholder returns at the same time as improving our client offering.”
Contact:
CVS Group plc: 01379 644 288
Simon Innes - Chief Executive
Paul Coxon - Finance Director
Buchanan Communications: 020 7466 5000
Richard Oldworth
Ben Romney
Panmure Gordon: 020 7459 3600
Richard Gray
Andrew Godber