A vet business founded 12 years ago with a single practice has been sold to retailer Pets at Home in a deal believed to be worth around £40 million, netting a windfall for its founder.

Vets4Pets will be merged with the retailer's own vet business, Companion Care, to create a 209-surgery business.

Its enlarged vet business will allow Pets at Home to offer more services to pet owners, giving it a bigger slice of the estimated 2,500-practice UK vet market.

Guernsey-based Vets4Pets was founded by its chief executive and majority shareholder Peter Watson using a joint venture or franchise model.

Mr Watson, who is not a vet himself, employed a similar model to grow optician chains Vision Express and Specsavers.

It opened its first practice in Bradford in 2001. Vets own the individual practice, but under a joint venture pay Vets4Pets for services including purchasing, marketing and administration. Vets will not receive a payout from the takeover.

Vets4Pets' branches employ about 900 staff and span vaccinations, neutering and general health, while some also offer intensive care medicine and surgery. Its operational centre will remain in the East Midlands, with support services being split between Oxfordshire and Guernsey.

Mr Watson will stay on with the business to help build its network of standalone vet practices.

Companion Care was founded in 2001 and also operates on a joint venture basis with vets. It employs 1,200 staff, with most of its surgeries based at Pets at Home stores.

Pets at Home chief executive Nick Wood (above) said: "Vets4Pets is highly complementary to Companion Care, sharing fundamental beliefs and values, and is an excellent strategic fit for Pets at Home."

A spokesman said there could be a small number of administrative job losses, but did not give further details.