Quantcast

Candy Maker Mars Buys Animal Hospital Chain VCA Inc (WOOF) for $9.1B


Shutterstock photo

InvestorPlaceInvestorPlace - Stock Market News, Stock Advice & Trading Tips

Mars  has agreed to acquire  VCA Inc (NASDAQ: WOOF ) in a deal worth $9.1 billion.

Mars Source: Wikipedia

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.

More From InvestorPlace

The post Candy Maker Mars Buys Animal Hospital Chain VCA Inc (WOOF) for $9.1B appeared first on InvestorPlace .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Stocks



More from InvestorPlace Media

Subscribe






InvestorPlace Media
Contributor:

InvestorPlace Media

Investing, Financial News










Research Brokers before you trade

Want to trade FX?