Maine-based Covetrus, Inc. has announced it will be acquired by private investment firm Clayton, Dubilier & Rice (CD&R) and private equity platform TPG Capital in a $4 billion transaction.
CD&R and its affiliates currently own 24% of Covetrus’ outstanding shares of common stock. In the deal, to be completed by the end of the year, CD&R and TPG will acquire common stock not already owned by CD&R and its affiliates for $21.00 per share, delivering a significant value to Covetrus shareholders, who unanimously approved the transaction.
The company supports the companion, equine, and large-animal veterinary markets worldwide.
“This transaction is an important milestone for our company, shareholders, employees, customers, and partners,” Benjamin Wolin, Covetrus’ President, Chief Executive Officer, and member of its Board of Directors, told Business Wire. “Not only does this deal provide compelling value for our existing shareholders, it allows Covetrus to continue its mission to drive positive outcomes – both business and healthcare – for veterinarians across the globe.”
CD&R first invested in Covetrus in 2015 when, as Vets First Choice, the company focused on online pharmacy services and had revenue totaling $55 million. Now, the company is a leading global provider of animal health products and services with revenue exceeding $4.6 billion.
“We are excited to have this opportunity to grow our investment in Covetrus and to do so in partnership with TPG and management,” said Ravi Sachdev, Partner at CD&R.
Covetrus will become a private company after the deal is completed. The management team, including Wolin, will stay on in their current leadership roles.