Sovereign Capital further funds UK veterinary services group's buy & build consolidation play

Sovereign Capital Limited ("Sovereign Capital") announces that it has led and structured a further £1.1m investment into CVS (UK) Limited ("CVS") to take its buy & build consolidation play in companion animal veterinary services to a total of 15 practices and two diagnostic laboratories.

Sovereign's total commitment to the healthcare business has risen by £1.2m to £5.2m and the equity from 62% to 80%.

Headquartered in Southampton and now employing 220 people, CVS was set up in August 1999 to participate in the consolidation of the veterinary industry through the incorporation of veterinary practices and services. The strategy of the group is to buy and build a selected number of veterinary practices and associated services and to establish a high quality chain providing a first rate level of service to vets, their clients and animals under their care. The company is now expecting to make a retail contribution of £1.4m and a PBIT of £950k from its time of start up some two and a half years ago.

The business, which is headed by Bruce Robinson, Managing Director, previously MD of Solvay Veterinary Services Ltd, has additional acquisitions in the pipeline and has recently appointed Terry Norris (Ex Blockbuster and Cash-a-cheque) as a non-executive director to broaden the board and support the group's rapid growth.

Peter Brooks, Managing Director, Sovereign Capital said:

"The CVS management team continue to demonstrate their ability to deliver a focussed growth strategy in an industry which has in the last few years gone through a period of considerable change and we believe that CVS will continue to build on their current market position."

Bruce Robinson, Managing Director, CVS said:

"Sovereign Capital have been active investors playing a valuable role in the continued growth of CVS. We are a lean and efficient business with a commitment to quality and 'Best Practice' where people are recognised as our greatest asset. We have maintained this approach throughout our rapid growth and are looking forward to further planned acquisitions."