The firms will pay
) shareholders $21 a share to take the animal-health services company private, valuing the company at about $4 billion. The transaction represents a 39% premium to Covetrus’ 30-day volume weighted average price per share as of the stock price on May 13.
“This transaction is an important milestone for our company, shareholders, employees, customers and partners,” said Benjamin Wolin, Covetrus CEO. “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.”
Wolin is expected to continue to lead the company, as well as other members of the current management team. The deal is expected to close in the second half of 2022 and is pending regulatory and shareholder approval.
Trading in the shares was halted in premarket trading on news pending, but has since resumed. The stock was up 4.6% to $20.56 on Wednesday.
Covetrus disclosed last week that it had received an acquisition offer from the private-equity firms. CD&R already owns a 24% stake in Covetrus, according to FactSet, which comes out to about 33 million common shares.
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