The National Veterinary Care Ltd (ASX: NVL) share price has gone up 2% after announcing some more acquisitions.

National Veterinary Care wants to be the biggest veterinary business in Australia. It has acquired and integrated 100 veterinary services businesses across Australia and New Zealand. It’s still looking to expand its clinic portfolio through acquisitions and increase earnings organically at each existing clinic.

National Veterinary Care’s Latest Acquisitions

The veterinary business announced this morning that it has entered into binding agreements to acquire veterinary clinics in two locations, one in Australia and one in New Zealand.

These new acquisitions are in existing National Vet Care’s geographic clusters. The New Zealand is a ‘strategic’ acquisition for consolidation with a smaller Pet Doctors clinic to achieve a larger & more sustainable clinic.

The two acquisitions are expected to deliver total revenue of around $2.45 million and total annual EBIT (click here to learn what EBIT means) of around $0.47 million.

Total cost for the acquisition will be $1.94 million, $1.34 million upfront and the rest deferred based partially on earnout conditions.

The acquisitions are still conditional on due diligence, board approval and lease assignments, with settlements expected by the end of November 2019, which will bring the total to 102.

National Veterinary Care Managing Director Tomas Steenackers said: “The New Zealand acquisition provides an opportunity for us to improve the sustainability and secure the future of a smaller nearby Pet Doctors clinic, which is a growth strategy we have previously had some success with in Australia.”

Is The National Veterinary Care Share Price A Buy?

Over the past six months the National Vet Care share price has gone up by 37% as investors return to the small cap space.

A roll-up strategy is not the most compelling business case on the ASX, but National Vet Care certainly isn’t a terrible idea as same clinic revenue increases and FY20 is expected to show 20% revenue growth with a higher profit margin.

It’s valued at around 20 times the 2019 financial year earnings, so it’s priced quite nicely for growth over the next couple of years. But if you’re after the best ASX growth shares it could be better to go for the ones in the free report below instead.

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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).

At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.