Premier Veterinary Group PLC Successful completion of business sale (7901D)

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: [phone] 
 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

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May 02, 2017 02:01 ET (06:01 GMT)