Vets Central, the veterinary buy & build platform backed by Pemba, is on an ongoing acquisitive growth journey through the consolidation of independent veterinary clinics. In 1H2022, with Pemba’s assistance, Vets Central was able to source, invest in and integrate 11 new clinics into its differentiated veterinary model, bringing Vets Central’s total site count to 21.
THE DEAL – VETS CENTRAL
After extensive research into the Australian veterinary services industry, Pemba became enthusiastic about the veterinary industry and its growth outlook. Pemba’s management team also brought years of experience within the sector and were looking to replicate their previous success within the industry. The founders of Vets Central selected Pemba as preferred partner to realise its’ vision for the industry, being a veterinary staff focused model, with differentiated employee co ownership model. Pemba’s buy & build & sector experience provided confidence in the potential to bring a unique and exciting offering together, along with a sustainable legacy, to the veterinary industry.
ABOUT VETS CENTRAL
The Vets Central team saw an opportunity to provide a differentiated offering to the highly fragmented veterinary industry. Vets Central’s model aims to be the ‘non-corporate offering’ in the market, with a focus on maintaining brand integrity, minimising KPIs and incentivising veterinarians within the clinics through a co-ownership. Vets Central also provide back-office support, such as payroll, finance, human resources, finance, recruitment, marketing and more, allowing veterinarians to focus on what matters – quality client care. Ultimately the model aims to provide the benefits of scale to clinics (support, savings, growth, initiatives) without losing the employee focus & supportive culture that corporatisation often brings.
1H2022 – PARTNERSHIPS UPDATE
After settling and integrating the initial portfolio of clinics in 2H202l Vets Central with Pemba’s help, transitioned to building out its acquisition pipeline. Vets Centrals value proposition to clinics of being the ‘non-corporate’ offering in the market, including no rebranding and vet-centric ethos, was received very positively by the veterinary market. Within a few months, Vets Central had built up a very strong pipeline and reputation, including a number of clinics which reached out directly enquiring about Vets Central.
In 2H2021 Vets Central had acquired an additional 3 clinics, bringing its site count from 7 to 10. In the recent 1H22 period, Vets Central acquired an additional 11 new clinics, bringing Vets Centrals number of sites to 21, an increase of over 50%.
1H2022 – ABOUT THE NEW CLINICS
In 1H2022, Pemba & Vets Central invested in 11 high-quality clinics within new or pre-existing geographic clusters (which bring operational synergies to the Vets Central network).
These clinics include 2 in Adelaide (Aldgate, Family Pet Vet), 2 in Perth (Cannington, Go Vets, ), 5 in Sydney/Central Coast (Sweet Pea, Doyalson, Croydon Park, Narellan, Toukley) and 3 in Melbourne (Seaford, Carrum & Belmont Vet).
These clinics are high-quality clinics, selected by Vets Central and Pemba’s rigorous minimum acquisition criteria based on each sites’ reputation, quality of fitout, quality of service, size, diversified staff base and metro locations. Each have long legacies within their respective communities and have been happy to join the culture, ethos and mission that Vets Central brings.
1H2022 – INITIATIVES UPDATE
Vets Central focus on strategic initiatives to drive organic growth and improve the value proposition available to clinics within the Vets Central network. They have reformed agreements with suppliers, providing significant savings, and continue to invest in support office capability in hiring dedicated resources to assist with accounts payable, recruitment, marketing, HR and finance.
PEMBA AND HEALTH SERVICES
Pemba is actively looking to partner with high-quality Health Services businesses. If you are considering external investment and would like to learn more about how Pemba Capital Partners together with its partner companies to achieve significant growth, please email opportunities@pemba.com.au
