(Covetrus) Shares of Covetrus rose more than 4% on Wednesday after announcing it will be acquired by funds affiliated to Clayton, Dubilier & Rice, and TPG Capital.
The acquirers will buy all the outstanding shares of Covetrus not owned by the affiliates of CD&R at $21.00 per share in cash. CD&R and its affiliates currently control around 24% of Covetrus outstanding common stock.
The price gives the stock a 39% premium to its unaffected 30-day VWAP as of May 13, 2022.
Covetrus, President and CEO, said that the deal is an important milestone as it provides a significant value to its shareholders.
The deal has been unanimously passed by the Covetrus board. The transaction is expected to close in the second half of this year, with Covetrus becoming a private company thereafter.
CVET: NASDAQ is up +4.175.
