CD&R, TPG team up for $4bn-Covetrus take private deal | AltAssets Private Equity News
Summary
Global buyout giant Clayton, Dubilier & Rice and TPG Capital has agreed to take animal-health technology company Covetrus private at $4bn valuation. The pair will acquire all outstanding shares of the company for $21 per share, representing a 39% premium to its 30-day volume weighted average price as of the unaffected stock price on May 13. Never miss a story – click to sign up to AltAssets’ free daily PE newsletter The board of directors of Covetrus has unanimously approved the proposed transaction. Sarah Kim, partner at CD&R, said, “Covetrus has undergone a true transformation since our initial 2015 investment in its predecessor Vets First Choice, growing from $55m in revenue focused primarily on online pharmacy in the US to a leading global provider of animal health services with more than $4.6bn in revenue.” Jeff Rhodes, co-managing partner at TPG Capital, said, “Covetrus offers a dynamic portfolio of leading distribution and technology solutions to veterinarians across the globe.” CD&R reportedly surged past its goal last February for Fund XI’s fundraising to reach about $16bn of capital. Other recent private equity deals in the veterinary sector include Trive Capital’s exit of American Veterinary Group to fellow private equity investor Oak Hill Capital and Warburg Pincus making a $170m investment in New York veterinary care clinics Bond Vet last year.
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