EBOS is to buy SVS Veterinary Supplies. Photo: RNZ / Nate McKinnon
EBOS - the animal and health care company behind well-known pet shop Animates - is raising up to NZ$275 million (A$250m) to buy 100 percent of New Zealand's SVS Veterinary Supplies.
SVS supplied pet medicines and other products to about 500 veterinary clinics and 200 speciality retailers in New Zealand and has more than a hundred employees.
"We are excited to welcome SVS to EBOS. SVS is a long-standing and successful business with a leading position in New Zealand," EBOS chief executive John Cullity said.
"The acquisition represents a logical expansion of our existing veterinary wholesale business in Australia and, over time, we see opportunities to share relationships and best practice across these businesses."
EBOS already raised $217m (A$200m) in a fully underwritten offer of 5.9m new shares to institutional investors and will raise another $54m (A$50m) in a retail offer to shareholders, which opens on Wednesday, 16 April.
The funds will be used to make an upfront payment of $115m to SVS and up to $10m more based SVS's future earnings.
EBOS also bought a 10 percent stake in Transmedic for about $35m, bringing its stake to 100 percent.
That followed EBOS's initial 51 percent buy-in of Transmedic in May 2022 as part of the LifeHealthcare acquisition, and a further purchase of 39 percent stake in in December 2023.
EBOS will use any money left over from the capital raise will be used to fund additional growth opportunities.
EBOS confirmed its earlier full year underlying guidance of between A$575 million to A$600 million, which excluded any contribution from SVS, while Transmedic's earnings had been consolidated in financial statements since the initial 51 percent purchase in May 2022.
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