Veterinary Operator Greencross (GXL) rose by 8.5% today after it announced that it has acquired two additional Veterinary clinics in Surfers' Paradise and Ashmore in Queensland for $2.2 million.
Greencross already has a portfolio of 33 practices around the country and said it aims to be the leading Australian provider of veterinary services by setting its sights on further expansion.
"The Surfers Paradise and Ashmore practices are profitable and the acquisition is expected to be revenue and earnings accretive to Greencross in the 2008 fiscal year," said Greencross in a statement.
"The expected annualised revenue per share will increase by 4.8 cents (3.2%) and annualised earnings per share is expected to increase by 1.2 cents (12.7%)."
The revenue of the new acquisitions is forecast to contribute an additional $1.5 million per annum to the Greencross group, representing a 4.8% increase on the company's pro forma revenue forecast of $32 million in the 2008 financial year.
This deal represents the third acquisition since Greencross listed on the ASX in June this year.
"These acquisitions further cement our leadership position on the Gold Coast and in Australia and we are now well positioned for more acquisitions," said managing director of Greencross, Glen Richards.
Shares in Greencross rose by 14 cents today to close up at $1.79.
