KKR is to acquire PetVet Care Centers from Ontario Teachers’ Pension Plan, L Catterton, and other existing shareholders. Financial details of the transaction have not been disclosed.
PetVet provides a full spectrum of veterinary services ranging from preventative and primary care to emergency critical care and surgeries. PetVet works in partnership with over 600 board certified specialists and general veterinarians across its network of 125 locally branded hospitals in 22 states.
“PetVet partnered with Ontario Teachers’ because of its deep experience investing in multi-site healthcare platforms, and this transaction marks the next stage of our company’s evolution,” says Gino Volpacchio, Chairman and Chief Executive Officer of PetVet. “With KKR as our new partner, we look forward to working with their team to realise our vision of making a difference in the lives of our pet patients and pet parents as well as veterinarians and employees.”
“PetVet has established itself as a leading veterinary care provider with an unmatched reputation for customer satisfaction and differentiated focus on local communities,” says Max Lin, Member of KKR. “We are excited to partner with PetVet and its affiliated veterinarians to accelerate the Company’s track record of organic and acquisitive growth.”
“Together with L Catterton, Ontario Teachers’ has helped PetVet grow from 30 hospitals in 2014, to become one of the premier veterinary hospital companies in the nation,” says Jane Rowe, Senior Managing Director, Private Capital at Ontario Teachers’ Pension Plan. “We thank L Catterton for its continued contribution, and vision in founding the company 6 years ago.”
Andrew C Taub, a Managing Partner of L Catterton’s Buyout Fund, says: “We are proud of our successful partnership with Gino and PetVet since its inception in 2012, as well as the substantial growth the company has achieved.”
KKR is making its investment primarily through its Core Investments strategy, which represents capital targeting longer-term compounding opportunities.
Jefferies LLC acted as exclusive financial advisor and Weil, Gotshal & Manges LLP acted as legal advisor to PetVet. Simpson Thacher & Bartlett LLP served as legal counsel to KKR. Fully committed debt financing will be provided by Jefferies and KKR Capital Markets.
