Private equity firm exits veterinary company
The private equity firm behind a West Yorkshire veterinary company has sold out to US-based Mars.
Sovereign Capital Partners, a UK private equity buy a build specialist, has announced the realisation of its investment in Linnaeus Group. Yorkshire-based Calder Vets, which has 12 branches including Mirfield, Dewsbury, Penistone, Wakefield, Denby Dale and Huddersfield, is a subsidiary of the firm, which employs 1,400 people across the UK.
Linnaeus Group, based in the West Midlands, is one of the UK’s leading veterinary services providers. It has been sold to Mars Petcare’s Veterinary Health Group, a part of Mars, Incorporated.
The exit, Sovereign’s largest ever sale in an undisclosed sum, will generate Sovereign’s strongest ever gross return.
Sovereign backed the original veterinary platform, Willows Veterinary Centre and Referral Service, one of the leading specialist veterinary centres for small animals in the UK, in September 2014. At the time of the investment, the business operated from a single hospital in the West Midlands employing around 120 staff.
Lynne Hill, an industry CEO and veterinary surgeon, was appointed to lead the management team as part of management succession. She was joined by Paul Coxon, finance director, who Sovereign had previously backed at CVS. Willows’ co-founders, Peter Renwick and Malcolm McKee, also stayed on the board as non-executive directors.
Sovereign recognised the opportunity to undertake a buy and build strategy to create a veterinary group – The Linnaeus Group. The private equity firm worked closely with the management team to help deliver significant organic growth via roll-out funding; identify and complete 21 acquisitions including Calder Vets; diversify its offering and expand its geographic reach.
It has grown from operating one to 87 sites in England including five specialist referral centres.
Hill, CEO at Linnaeus Group, said: “Our expansion with Sovereign has been both pacey and exciting. It’s not just that Sovereign have supported our M&A activity, their commitment to investing in the best, focusing on what really matters, and providing development funding has been fantastic.
“We look forward to continuing to develop Linnaeus further over the years ahead.”
Neil Cox, partner at Sovereign, added: “From the moment we first visited Willows, the original platform, and saw the sheer quality of service and care offered, we knew that this was a really special opportunity and one we wanted to develop further. It has been a fantastic growth journey and reflects our commitment to partnering with strong businesses and management teams to deliver growth, whether organically or through strategic acquisitions. We wish the management team and the business every success for the future.”
