Vets group targets growth after £10m funding deal advised out of Birmingham
VETERINARY services group CVS is targeting growth after securing a £10m funding package. The AIM-listed group has attracted support from the Midlands and East structured finance team at the Royal Bank of Scotland Corporate & Institutional Banking.
RBS CIB was advised on the deal by the Birmingham office of law firm Eversheds.
Since its inception in 1999, CVS has grown significantly and now has an annual turnover in excess of £120m. The business currently operates 252 surgeries throughout the UK, employing in excess of 2,500 staff. As well as its five diagnostic laboratories, two pet crematoriums and an online dispensary; the business has also recently launched a veterinary locum service and a veterinary buying group, called Mi Vet Club.
The new finance package from RBS CIB supports Diss-based CVS’ medium-term growth strategy, providing a dedicated facility to support the continued acquisition of veterinary practices. It is targeting practices which are well established within their local communities and have a reputation for high quality service.
The funding will also give the group, which has banked with RBS CIB since inception, the platform to continue to invest in its diversification programme, including the potential addition of large animal and equine practices and new crematoria. This will complement strong organic growth in existing operations, notably its UK online dispensary platform Animed Direct, which has expanded significantly rapidly since launching in 2011 with plans now to move into the European market.
Nick Perrin, finance director, CVS Group, said: “We are delighted with the latest funding package RBS CIB has developed, and to continue our strong working relationship with the team. Combined with the cash generated from our operations together with this new facility, we now have ample resources and flexibility to continue the successful strategy of acquisition-led growth.”
Ben Dawson, director – Structured Finance Corporates, RBS CIB, added: “RBS has enjoyed a long and successful track record with CVS and we are delighted to be able to provide this new facility to support the growth of the group. The excellent management team at CVS continue to build on their market leading position and we look forward to being part of their on-going development.”
