IVC changes investment hands
August Equity has sold Independent Vetcare to Summit Partners.
August Equity (August Equity LLP) has completed the sale of Independent Vetcare (IVC) to Summit Partners in an off-market transaction.
August Equity created IVC in September 2011 through the acquisition of three veterinary groups in Bath, Bristol and Hertfordshire. According to the firm, the strategy was to create a differentiated UK veterinary consolidator which was vet-led in its approach and focused on the highest standards of clinical delivery.
Since then, IVC has been successful in attracting further independent practices, with over 40 groups joining to take the total number of sites to over 100 in under three years. Recently, as part of its ‘mission to become the No. 1 Veterinary Graduate Employer of Choice’, it has announced the launch of a ‘Graduate Academy from September 2014 with a limited number of £5,000 bursaries for the right candidate’.
In an article entitled ‘Animal Instinct’, on its website, August Equity writes: ‘In summary, the animal health market continues to be a highly rated and highly sought after area for investors. Whilst the defensive characteristics of the market are well documented and understood, changing demographics, attitudes to pets and medical advancements are leading to new opportunities and niche areas of growth for investors’.
The acquisition of IVC by Summit Partners is a logical conclusion of this approach and further evidence of sections of the veterinary practising sector being seen primarily as an investment opportunity. As August Equity managing partner, Philip Rattle, said: “IVC is the third sale from our 2008 fund, August Equity Partners II, which has now returned over 90 per cent of cost. IVC is an excellent example of our ability to identify service businesses in fragmented markets where we can build market-leading businesses of scale.
Summit Partners was founded in 1984 with ‘a commitment to find and partner with exceptional entrepreneurs to help them accelerate their growth and achieve dramatic results’. It already has a variety of ‘healthcare services companies’ on its books covering a diversity of fields ranging from health insurance to homecare, from dentistry to dialysis.
It would appear that the addition of IVC to its portfolio marks a move by Summit Partners to broaden its footprint by venturing into the veterinary healthcare sector.
The RCVS has announced a new version of its 1CPD mobile app, with enhanced features for veterinary surgeons and veterinary nurses to record their continuing professional development.
