Mars has agreed to acquire VCA Inc (NASDAQ:WOOF) in a deal worth $9.1 billion.
The candy maker is shelling out about $93 a share for the animal hospital chain, which will arrive with about $1.4 billion in debt. Morgan Stanley (NYSE:MS) and BDT advised Mars on the deal.
Barclays advised VCA on the deal, which is expected to close in the third quarter. Mars CEO Grant Reid spoke on the matter, noting that it would be acquiring a top company comprised of the best pets, pet owners and veterinarians out there.
He said the deal is tremendous for everyone involved. VCA will operate as its own entity within Mars Petcare. The animal hospital chain has about 800 pet care hospitals around the U.S.
The deal is subject to regulators’ approval as it will give the combined company quite a large portion of the veterinary and pet care market in the U.S. The market is worth about $4 billion on a global scale.
The move is part of a broader effort by Mars to rebrand itself as a company that is committed to health. One way in which it is achieving this goal is by adding a slate of food products for pets.
The $93 per share offer by Mars is a 31.4% premium to WOOF stock’s closing price Monday.
WOOF stock grew 0.1% Tuesday.
