Mars Inc is purchasing pet hospital operator VCA Inc (NASDAQ:WOOF) in a deal worth $7.7 billion that would boost up the Whiskas and Pedigree pet food maker’s hold on the pet care segment. The deal would assist privately possessed Mars, better recognized for candies including M&M’s and Snickers, add almost 800 pet hospitals to its network of above 900 clinics, which consists of the 61-year-old Banfield pet hospital chain.
The merger of Mars Petcare and VCA would control the veterinary care industry in the United States, holding an even better share of the almost $4 billion global pet care segment. McLean, Virginia-located Mars is previously the largest pet food firm in the world – it possessed a quarter of the global pet food market till 2015 – accompanied by Nestle SA (NESN), the manufacturer of the Purina cat and dog food brand.
Mars reported that it would provide $93 apiece, a premium of 31.4 percent to VCA’s Friday ending price. Consisting of debt, the deal is priced at $9.1 billion. VCA’s shares were moving north 28.3 percent at $90.78 on Monday trading session. The firm, created in 1986, had annual sales of $2.13 billion in 2015.
Mars, which also possesses the BluePearl chain of emergency and specialty veterinary care clinics, had yearly pet food sales of $17.80 billion in 2015, as per reported by Euromonitor data.
Mars’ financial advisers contained Morgan Stanley & Co. LLC and BDT & Co, while Skadden, Arps, Slate, Meagher & Flom gave legal advice.