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It has been interesting to read the NSW Parliamentary Committee report from its Inquiry into the veterinary workforce shortage in NSW. ( See Report ) The committee has made over 30 recommendations to help address the concerns demonstrated by the significant number of stakeholders who contributed to the enquiry.

The mention by Southern Cross University of their planned Veterinary School prompted me to compare our schools in Australia & New Zealand to the ones in the UK. Those of us who graduated some time ago may be surprised at the growth that has taken place in the veterinary education sphere.

Author:

Wendy Nathan
Kookaburra Veterinary Employment

This information includes the views and opinions of Kookaburra Veterinary Employment and is of a general nature only. Factual information is believed to be correct at the time of writing, however, should not be relied upon and any person should confirm details with the relevant authorities and through their own research prior to acting on any of the suggestions in this article.

As the veterinary industry faces increasing levels of consolidation, it’s important to be aware of ownership of practices, as it can factor in to decisions about job applications. Some ‘independently owned’ practices are starting to promote this as an attractive option to job applicants, and new graduates are faced with a barrage of promotion from the major consolidators, who are able to offer attractive graduate training packages.

So, who are the major players?

Around 60% of veterinary practices in the U.K. are owned by six large consolidators, according to the CMA (the UK Competition and Markets Authority). The CMA has identified six large corporate groups (CVS, IVC Evidensia, Linnaeus, Medivet, Pets at Home, VetPartners) owning veterinary practices, including three that are owned by private equity firms.  After an initial review in September 2023, The CMA has reached a provisional decision to open a formal market investigation.

In the United States, about 30% of general practices and 75% to 80% of specialty practices are owned by consolidators, together accounting for at least 50% of industrywide revenue, by the reckoning of Chicago-based Brakke Consulting.

Levels of ownership concentration in Australia are lower, though by how much is unclear. According to data compiled by IBISWorld in 2023, VetPartners controls some five per cent of the Australian veterinary industry compared with Greencross, which has a 6.1 per cent share. The remaining 88.9 per cent is split among the remaining operators, many of whom are single-practice businesses. Australian consolidators have also acquired veterinary education facilities, pet crematoria, pet stores, and pathology businesses.

Some of the major Australian consolidators at the moment are:

• Vetpartners –  acquired by Swedish private equity firm EQT (BPEA Private Equity Fund VIII) in 2023. Vetpartners practices are individually branded, but also incorporate some GP groups such as Vetwest and AdelaideVet, and a growing ream of referral centres including Southpaws, Brisbane Veterinary Specialist Centre, North Shore Veterinary Specialist Centre, Sydney Veterinary Emergency & Specialists, Peninsula Vet Care, and Perth Veterinary Specialists.
• Greencross – acquired by US private equity firm TPG Capital (55%) in 2019. A 45% stake is owned by AustralianSuper and HOOP. There has been some interest in the group from Wesfarmers. GP clinics are branded Greencross, and there’s a network of Animal Emergency Centres, and also the Animal Referral Hospital group. Greencross also owns Petbarn, Animates, City Farmers and Habitat Pet Supplies.
• Apiam Animal Health Limited, including Furlife Vet  companion animal clinics – ASX listed public company. With 80 clinics, Apiam is touted to be an attractive target for a buyout.
• Vets Central – Pemba Capital Partners, Australian private equity firm (2021). Over 45 clinics according to the Pemba Capital Partners website. Pemba Capital Partners also has an interest in Queensland Veterinary Specialists, and VSA in New Zealand (Veterinary Specialists Aoteara).
• CVS – CVS Group plc – UK listed public company currently expanding their consolidation of clinics in Australia, currently standing at around 28.
• Petstock – Petspiration Group. 55% owned by Woolworths since the end of 2023
• OurVet – PetO –  Australian owned private company. In 2024 PetO has taken over the practices divested by the Petspiration Group following the Woolworths deal (41 stores and 25 co-located vet clinics, branded Best Friends, Our Vet, My Pet Warehouse and Pet City), to add to a handful of clinics in Sydney.
• Animal Emergency Australia, AES – Independent Employee Owned. Practices in 6 states.
• Small Animal Specialist Hospital, SASH – Independent Vet Owned, private equity company has a minority stake

So how about New Zealand? Vet Clubs are being corporatized and clinics are also being consolidated, although it may not be as immediately obvious.

• Vetpartners – owned around 50 clinics in NZ in 2023. Including Pet Doctors (most now de-branded). Foreign owned – acquired by Swedish private equity firm EQT (BPEA Private Equity Fund VIII) in 2023
• Vetora – Vet Club
• Vetlife Animal Health Partners – vet club/private company
• VetEnt – Veterinary Enterprises Group Limited, Petfirst – private company
• Anexa Veterinary Services – Anexa FVC – private company

The Kookaburra Vet Employment Salary Survey in 2022 highlighted some differences between corporate and non-corporate practices, one of which was the ‘happiness’ scores (243 responses).

It’s to be hoped that as levels of consolidation increase, these companies take the crisis in veterinary mental health seriously, and implement measures to improve support and working conditions for all their employees.

Author:
Wendy Nathan
Kookaburra Veterinary Employment

This information includes the views and opinions of Kookaburra Veterinary Employment and is of a general nature only. Factual information is believed to be correct at the time of writing, however, should not be relied upon and any person should confirm details with the relevant authorities and through their own research prior to acting on any of the suggestions in this article.