CVS has made another financially and strategically attractive acquisition – Highcroft Pet Care for c.£11.5m EV at a sensible multiple. The deal not only brings CVS its first significant presence in Bristol but importantly, further strengthens its referrals geographic footprint towards achieving national coverage. We push through a 1.5% EPS upgrade for FY16 and a more meaningful 5% for FY17 / FY18 and see fair value towards 800p. High conviction of over delivery justifies the premium rating.
