CVS raises further funding

Investee Company – Consolidated Veterinary Services (UK) Limited (‘CVS’)

Investee Company Business Type – Companion animal veterinary services

Type of Financing – Expansion

Equity Providers – Sovereign Capital Ltd

Equity Leader (Individual) – Peter Brooks

Debt Providers – N/A

Debt Type – N/A

Debt Leader (Individual) – N/A

Equity Amount -£1.1 million

Total Deal Value – £1.1 million

Other Advisors – Arthur Andersen/Hazelwoods (accountants)

Gouldens/Bond Pierce (legal)

Comments – Sovereign Capital has announced a further £1.1 million investment in CVS (UK) Ltd, a buy and build of veterinary practices. The group now comprises 15 veterinary practices and two diagnostic laboratories. Sovereign have made several investments in the company and this round takes the total amount committed to £5.2 million.

CVS was set up in August 1999 to participate in the consolidation of the veterinary industry when the Royal College of Veterinary Surgeons allowed incorporation for the first time and loosened previously tight marketing regulations. The group’s strategy is to buy and build a certain number of veterinary practices and related services so they can provide first rate services to vets, their clients and animals in their care.

Peter Brooks, managing director, Sovereign Capital said: “The CVS management team continue to demonstrate their ability to deliver a focused 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.”