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Pet DRx Acquires Valley Animal Medical Center in
Coachella Valley
Additional Acquisitions in California Currently in Negotiation
BRENTWOOD, Tenn.--Pet DRx, Inc. (NASDAQ: VETS) today announced
it has acquired the Valley Animal Medical Center located in
Indio, California. The acquisition will bring to eight (8) the
total number of veterinary hospitals located in Coachella Valley
owned by the Company. Terms of the transaction were not
disclosed. Pet DRx estimates that the annual revenue generated
from Valley Animal Medical Center will be in excess of $4
million.
“We are very pleased to add Valley Animal Medical Center to our
strong network of veterinary practices serving Coachella
Valley,” said Bob Wallace, the Company’s chief executive
officer. “Currently, we believe we are the leading provider of
pet care and wellness in the region and the addition of Valley
Animal Medical Center to our network of hospitals will further
enable us to deliver the most comprehensive pet care in the
Coachella Valley. Pet DRx’s high performing operations in this
region demonstrate the viability of our unique ‘hub and spoke’
model, and we are focused on continuing to build out our network
in this region.”
Pet DRx also announced that it has signed a definitive agreement
to acquire a veterinary hospital located in San Diego,
California. Terms of the transaction, which is subject to
certain conditions and approvals, were not disclosed. Pet DRx
anticipates completing this acquisition in the next two weeks.
Pet DRx also has signed letters of intent to acquire two
additional veterinary hospitals in San Jose, California and San
Diego, California. The Company is actively negotiating the terms
of these transactions, which will be subject to certain
conditions.
Mr. Gene Burleson, the Company’s chairman of the board,
commented “Our business strategy has been to develop ‘hub and
spoke’ networks pursuant to which we would use larger, fully
equipped veterinary hospitals (“hubs”) to provide a wide range
of specialty medical, diagnostic and non-medical services, and
use traditional smaller general practices (“spokes”) to feed
patients to the hub when the patients require a broader array of
more specialized services that a general practice is not
equipped to provide. We believe strongly in our business
strategy and our acquisition of Valley Animal Medical Center
underscores our commitment to execute on our business model. We
remain optimistic about our ability to acquire veterinary
hospitals and clinics that are strategic to our existing
locations. We have a very rich pipeline of potential
acquisitions on which we are conducting due diligence, and I
expect we will have additional announcements regarding these in
the near future.”
About Pet DRx
Pet DRx Corporation, headquartered in Brentwood, Tennessee,
provides veterinary primary care and specialized services to
companion animals through a network of fully-owned veterinary
hospitals. The Company currently owns and operates leading
veterinary hospitals in the state of California, which it has
organized into unique, regional “hub and spoke” networks. Pet
DRx provides a full range of general medical treatments for
companion animals, including (i) preventive care, such as
examinations, vaccinations, spaying/neutering and dental care
and (ii) a broad range of specialized diagnostic and medical
services, such as internal medicine, surgery, cardiology,
ophthalmology, dermatology, oncology, neurology, x-ray,
ultrasound and other services.
SAFE HARBOR STATEMENT
Certain statements and information included in this press
release, including statements as to the Company’s pipeline of
potential acquisitions and the timing of those acquisitions, and
to the expected operations of the Company, its prospects for
growth, and future product and service offerings constitute
“forward-looking statements” within the meaning of the Federal
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to risks and
uncertainties that may cause actual results to differ
materially, including, but not limited to,the ability of the
Company to successfully acquire, integrate and operate
veterinary hospitals and clinics, requirements or changes
affecting the businesses in which the Company is engaged,
veterinary services trends, including factors affecting supply
and demand, dependence on acquisitions for growth, labor and
personnel relations, changing interpretations of generally
accepted accounting principles and other risks detailed from
time to time in the Company’s SEC reports, including its Current
Report on Form 8-K, as amended, filed on April 4,2008, its
Registration Statement on Form S-4, as amended, filed on
November 8, 2007, and its quarterly report on Form 10Q for the
period ending March 31, 2008. These forward-looking statements
speak only as of the date hereof. The Company disclaims any
intention or obligation to update or revise any forward-looking
statements.
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