(MENAFN- ProactiveInvestors - Australia) Greencross (ASX: GXL) is continuing with its acquisition strategy, entering into an agreement to buy the Strathalbyn Veterinary Clinic in South Australia for A$900,000.
The clinic is expected to deliver annualised revenue and EBIT of $1.56 million and $257,000 respectively.
It is expected to be earnings per share accretive in the 2013 fiscal year.
This transaction is subject to deferred vendor payments of about 20% of the total consideration for a period of up to 24 months. The vendor has entered into an employment agreement for a minimum of 2 years.
Strathalbyn is a well established business that has been in operation in the area for about 40 years.
Greencross had last month raised $11.164 million via placement to sophisticated and institutional shareholders to advance its growth strategy and reduce its gearing levels.
Greencross is one of Australia's leading veterinary services company and has acquired and integrated 92 practices since it was started in 2003.Â
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