CD&R, TPG Take Covetrus Private In $4B Deal

Clayton, Dubilier & Rice (CD&R), a private investment firm, and TPG Capital will acquire animal-health technology and services company Covetrus Inc 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.