Animal health firm Covetrus is set to go private under a $4-billion deal with funds affiliated with Clayton, Dubilier & Rice, and private investment firm TPG Capital.
CVET is up 4.12%, while PAWZ is up 0.71%.
Under the agreement, the parties will acquire all outstanding shares of Covetrus common stock not currently owned by CD&R affiliates for $21 per share in cash or an enterprise value of $4 billion.
The transaction value reflects a 39% premium to the 30-day volume-weighted average price per share of Covetrus’ unaffected stock price as of May 13, 2022. It has already been unanimously approved by the Board of Directors.
The transaction is expected to be finalized in the second half of the year, subject to regulatory and shareholder approval. It will be financed through a combination of cash funded by investment funds linked with CD&R and TPG Capital and debt financing.
Following the completion, Covetrus will go private and will no longer be publicly listed or traded on NASDAQ. Its management team will continue to lead the firm and maintain headquarters in Portland, Maine.