Sovereign Capital announces successful flotation of the CVS group on the Alternative Investment Market

Sovereign Capital ("Sovereign"), the UK private equity buy and build specialist, today announces the realisation of its investment in veterinary services consolidator CVS Group ("CVS") through the flotation of CVS on AIM. The flotation at a market value of £105.7 million has returned 11.9x money invested and an IRR of 52% to Sovereign over the life of the investment.

CVS was established in August 1999 and with financial backing from funds managed by Sovereign it commenced the consolidation of the veterinary practice market. To date it has made 39 acquisitions and now comprises 45 practices nationwide together with three diagnostic laboratories.

Based in Diss, Norfolk, CVS operates as two divisions. The practice division is composed of 127 small animal veterinary surgeries, more than double the number of small animal veterinary surgeries operated by the nearest competitor, and one equine surgery; the three laboratories making up the diagnostic division provide services to CVS and to third parties. CVS currently employs over 1,200 staff, including over 270 vets.

Under the current management team of Simon Innes, Chief Executive, and Paul Coxon, Finance Director, sales have increased to £39.0 million in 2007, generating an EBITDA of £5.1 million.

Commenting on the transaction, Kevin Whittle, Director at Sovereign Capital, said:

"CVS is an excellent business with a clear strategy implemented by a first-rate management team.  CVS's consistent record of growth clearly illustrates the value of Sovereign's buy and build approach. We are delighted with the result and to have played an integral part in shaping both the market and the company. We wish the business well for the future."

Simon Innes, Chief Executive of CVS, added:

"I am delighted with the flotation. PLC status will enhance our awareness and reputation in the industry, help drive business and attract potential acquisitions. Sovereign has been a committed and  loyal partner throughout the period of its ownership. It has understood the business well and added value in all key strategic decisions."