- Clayton, Dubilier & Rice (CD&R), a private investment firm, and TPG Capital will acquire animal-health technology and services company Covetrus Inc (NASDAQ:CVET) for $21.00 per share, representing an enterprise value of approximately $4 billion.
- CD&R and its affiliates currently beneficially own approximately 24% of the company's outstanding shares of common stock.
- The transaction represents a 39% premium to Covetrus' 30-day volume-weighted average price per share as of the unaffected stock price as of May 13, 2022.
- Related: Raymond James View Skewed Scenarios On Absent Supportive Bid For This Animal Health Stock.
- "Covetrus has undergone a true transformation since our initial 2015 investment in its predecessor, Vets First Choice, growing from $55 million in revenue focused primarily on online pharmacy in the US to a leading global provider of animal health services with more than $4.6 billion in revenue," said Sarah Kim, Partner at CD&R.
- The transaction is expected to close in the second half of 2022.
- Upon completing the transaction, Covetrus will become a private company and no longer be publicly listed or traded on NASDAQ.
- Covetrus' management team, including Benjamin Wolin, President & CEO, is expected to continue to lead the company.
- Covetrus plans to maintain its headquarters in Portland, Maine, and will continue to operate under its current brands.
- Price Action: CVET shares are up 4.20% at $20.49 during the market session on the last check Wednesday.
