EQT to acquire Independent Vetcare from Summit

Financial details of the transaction remain undisclosed, though Reuters recently reported a number of banks were preparing to provide a £150m debt package to support the deal.

EQT’s capital for the transaction was drawn from its sixth fund, which held its final close on its €4.75bn hard-cap in October 2011. Two years ago, the fund also invested in the secondary buyout of Nordic animal healthcare group Evidensia Djursjukvård from Valedo Partners.

At the time of publication, unquote” was awaiting confirmation from Independent Vetcare over whether there are any plans to merge the business with Evidensia.

The deal marks the third consecutive period for the business under private equity ownership, with each previous owner having employed a buy-and-build growth strategy for the company.

Under the vendor’s tenure, Independent Vetcare has grown from 100 sites to 290. According to publicly available records, the company invested £18.7m in 26 acquisitions during the year to September 2015, which comprised a total of 41 practices. The previous year saw 22 bolt-ons comprising 70 practices.

According to a statement, Independent Vetcare will continue to pursue an acquisitive growth strategy under its new ownership model, with CEO David Hillier remaining at the helm.

The transaction was conducted via a competitive auction process with Bain Capital, Nordic Capital, Omers and Ares Management all having taken an interest in the business, according to Reuters.

The transaction is expected to close in early 2017, subject to regulatory approval.

Previous funding
August Equity acquired Advanced Vetcare and Rowe Veterinary Group in October 2011, and merged the two companies to create Independent Vetcare. The transaction gave the consolidated business an enterprise value of £35m.

Two months later, August provided acquisition finance to support the bolt-on of Berry House Group. Under the GP’s tenure, the company’s profits increased by a multiple of four with site numbers growing from 20 to 100.

Summit Partners then acquired Independent Vetcare from August Equity in July 2014 in a deal estimated to be worth £100m, according to unquote” data.

Company
Bath-headquartered Independent Vetcare was formed in 2011 through the merger of Advanced Vetcare and Rowe – founded in 2007 and 1948 respectively. The business has a headcount of 2,700, including 800 veterinarians. In addition to providing veterinary care, it also operates an online pet pharmacy.

Independent Vetcare generated a turnover of £84.9m in the year to September 2015, according to publicly available records, with EBITDAM before exceptional items of £11m. This represented a year-on-year increase from £49.6m and £7m respectively.

People
Summit Partners – Thomas Tarnowski (principal).
EQT – Per Franzén (partner).
Independent Vetcare – David Hillier (CEO).

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