Premier Veterinary Group PLC Successful completion of business sale (7901D)
May 02 2017 - 1:01AM
UK Regulatory
TIDMPVG
RNS Number : 7901D
Premier Veterinary Group PLC
02 May 2017
PREMIER VETERINARY GROUP PLC
("PVG", the "Company" or the "Group")
Successful completion of business sale
London, UK, 02 May 2017 - Premier Veterinary Group plc (LSE:
PVG) announces today that, further to the announcement made on 3
March 2017, it has completed the sale of the business, trade and
assets of its buying group ("the Premier Buying Group") to Animal
Healthcare Services Limited, a subsidiary of Henry Schein, Inc.
(the "Acquirer") for a cash consideration of GBP6.3million.
The Premier Buying Group offers enhanced discounts to member
practices on pharmaceutical and consumable spending. All related
employees will be transferred to the Acquirer. The Board believes
that the Acquirer is well positioned to enhance the offer currently
available to Premier Buying Group members.
The net cash proceeds after transaction costs and taxation of
between GBP4.5m and GBP5.0m will, as previously announced, be used
to repay all existing debt of GBP1.25m and further fund PVG's
international growth plans for its Premier Pet Care Plan ("PPCP")
business in both the USA and Europe.
For the year ended 30 September 2016, the Premier Buying Group
contributed revenues and operating profit of GBP1,120k and GBP766k
respectively. As at 30 September 2016, the book value of gross
assets that are subject to the disposal were GBP100k. The disposal
of the Premier Buying Group is expected to be earnings
dilutive.
For further information, please contact:
Premier Veterinary Group plc Tel: +44 (0)117 970 4130
Dominic Tonner, Chief Executive
Officer
Will Evans, Chief Financial Officer
Note to Editors:
PVG's services to third party veterinary practices, through its
wholly-owned subsidiary, Premier Vet Alliance Limited ("PVA"),
include the administration and support of a preventative healthcare
programme for pets branded "Premier Pet Care Plan" ("PPCP"). In the
US, where veterinary practices are known as veterinary hospitals,
PPCP is marketed through the Company's wholly-owned subsidiary,
Premier Vet Alliance (US) Limited.
PPCP is a structured, preventative healthcare programme for
cats, dogs and rabbits and is available only through veterinary
practices/hospitals. The programme is seen as a way of providing
gold standard care for pets at an affordable price for the client,
by way of fixed monthly payments.
PPCP uses a clinical approach to prevention, as this is the most
effective method of ensuring illnesses are diagnosed more quickly
and not given a chance to advance. What truly sets PPCP apart is
its unique approach of offering an end-to-end solution and support
to the practice/hospital, which has been proven to work extremely
well. PVA works alongside practices/hospitals to create a
tailor-made, cost-effective service for clients, one that delivers
excellent care to their patients and significantly improves
practice/hospital performance.
For further details:
http://www.premiervetalliance.co.uk/
This announcement includes "forward-looking statements" which
include all statements other than statements of historical facts,
including, without limitation, those regarding the Company's
financial position, business strategy, plans and objectives of
management for future operations, and any statements preceded by,
followed by or that include forward-looking terminology such as the
words "targets", "believes", "estimates", "expects", "aims",
"intends", "will", "can", "may", "anticipates", "would", "should",
"could" or similar expressions or the negative thereof. Such
forward-looking statements involve known and unknown risks,
uncertainties and other important factors beyond the Company's
control that could cause the actual results, performance or
achievements of the Company to be materially different from future
results, performance or achievements expressed or implied by such
forward-looking statements. Such forward-looking statements are
based on numerous assumptions regarding the Company's present and
future business strategies and the environment in which the Company
will operate in the future. These forward-looking statements speak
only as at the date of this announcement. The Company expressly
disclaims any obligation or undertaking to disseminate any updates
or revisions to any forward- looking statements contained in this
announcement to reflect any change in the Company's expectations
with regard thereto or any change in events, conditions or
circumstances on which any such statements are based. As a result
of these factors readers are cautioned not to rely on any
forward-looking statement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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