Covetrus, Inc. (NASDAQ: CVET) has signed a definitive agreement under which funds affiliated with Clayton, Dubilier & Rice (CD&R) will acquire all outstanding shares of Covetrus common stock not already owned by CD&R affiliates for $21.00 per share in cash, signifying an enterprise value of around $4 billion.
CD&R and its affiliates now possess roughly 24% of the Company's outstanding common stock. The transaction provides considerable value to Covetrus stockholders, representing a 39 percent premium to the company's 30-day volume-weighted average price per share as of May 13, 2022. It has been disclosed that the Board of Directors of Covetrus has unanimously approved the deal.
Since Covetrus initial investment in its forerunner Vets First Choice in 2015, Covetrus has grown from $55 million in revenue-focused primarily on online pharmacy in the United States to a prominent global provider of animal health services with more than $4.6 billion in revenue. The company is happy to have this chance to extend its investment in Covetrus in conjunction with TPG and management.
This transaction is a significant milestone for Covetrus, shareholders, workers, customers, and partners. This transaction not only provides compelling value to its existing shareholders but also allows Covetrus to continue its purpose of driving better business and healthcare outcomes for veterinarians around the world. CD&R's continuous dedication to its organization and the global veterinary community is appreciated.
Additionally, Covetrus provides veterinarians throughout the world with a dynamic portfolio of top distribution and technology solutions. The company is at a crucial juncture in its ongoing evolution, and it is looking forward to engaging with management and CD&R to strengthen its leadership in the developing animal health area.