Pets at Home acquires The Vet Connection for £15 million

Pets at Home acquires The Vet Connection for £15 million
Written by:
Wajeeh Khan
November 30, 2020
  • Pets at Home acquires The Vet Connection for £15 million.
  • The British firm declared 2.5 pence per share of interim dividend.
  • Pets at Home to keep its stores closed on Boxing Day this year.

In an announcement on Monday, Pets at Home Group (LON: PETS) said it had bought The Vet Connection (veterinary telehealth provider) for £15 million. The company said that the acquisition will help it capitalise on remote consultations amidst the COVID-19 crisis that has restricted people to their homes.

The ongoing Coronavirus pandemic has so far infected more than 1.6 million people in the United Kingdom and caused over 58 thousand deaths. According to CEO Peter Pritchard:

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“The acquisition of TVC marks an important next step in the development of our digital capabilities providing trusted advice and even more convenient pet care services.”

Pets at Home declared 2.5 pence per share of interim dividend

Earlier in November, Pets at Home expressed confidence that demand for cat litter, dog food, and flea collars was keeping positive in the current quarter, but warned that the outlook remained uncertain for the upcoming months as the government announced new restrictions to combat the pandemic.

Pets at Home declared 2.5 pence per share of interim dividend last week as it revealed a 5.1% annualised increase in its revenue in the fiscal first half.

Virtual consultations have been much in demand this year due to the COVID-19 crisis. According to TVC, it already conducts roughly 90 thousand remote consultations annually. Pets at Home also said on Monday that it will use its existing cash reserves to the finance the deal. The pet supplier retailer currently operates 451 stores in total.

Pets at Home to keep its stores closed on Boxing Day

Last week, Pets at Home said it will keep its stores closed on Boxing Day this year to let its workers spend more time with their family and friends on Christmas.

Pets at Home shares closed the regular session a little under 2% down on Monday. The stock is now exchanging hands at 419 pence per share versus a much lower 287 pence per share at the start of the year. Pets at Home at tumbled further to 195 pence per share in mid-March when the impact of the Coronavirus pandemic was at its peak. Learn more about how to choose winning stocks to make money on the stock market.

Pets at Home Group performed largely upbeat in the stock market last year with an annual gain of roughly 140%. At the time of writing, it is valued at £2.10 billion and has a price to earnings ratio of 29.47.