Saturday 27th May, 2017
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Mars to buy pet health care provider VCA for $7.7bn

Mars to buy pet health care provider VCA for $7.7bn

Mars Inc said it would buy VCA Inc for $7.7 bil­lion, cement­ing the Whiskas and Pedigree pet food mak­er’s position as the largest oper­ator of pet hospi­tals in the United States.
 
Candy mak­er Mars, also the largest pet food manufacturer in the world, said it would offer $93 for every share, a premium of 31.4 percent to VCA’s Friday closing price.
 
VCA shares were trading at $91 before the opening bell on Monday.
 
Mars became the No. 1 pet food maker in 2014, af­ter buying Procter & Gam­ble Co’s pet foods business, known for brands such as Iams and Natura, for $2.9 billion.
 
Nestle SA, the maker of Pu­rina pet products, is the sec­ond-biggest pet food maker, according to Euromonitor data.
 
VCA, founded in 1986, operates nearly 800 animal hospitals with 60 diagnos­tic labo­ratories in the Unit­ed States and Can­ada. The compa­ny had an­nual sales of $2.13 billion in 2015.
 
Mars Petcare business includes the Banfield Pet Hospital, which runs over 900 pet clin­ics.
 
Morgan Stanley & Co. LLC and BDT & Co were Mars’ fi­nancial advisers, while Skad­den, Arps, Slate, Meagher & Flom provided legal advice.
 
Barclays was VCA’s finan­cial adviser and Akin Gump Strauss Hauer & Feld LLP and Potter Anderson Cor­roon LLP were legal advisers.

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