Mars, Incorporated, which is well-known for its candy but also owns pet-care business, announced this week that it would acquire the pet health company, VCA Inc. (NASDAQ: WOOF) for $9.1 billion. The deal is expected to be closed in the third quarter, subject to shareholder and regulatory approval.
In the statement, Mars will acquire all VCA’s shares for $93 per share, or $9.1 billion in total, including outstanding debt of $1.4 billion. The price paid by Mars represents a premium of around 31% over closing price of VCA on January 6, 2017.
“We are thrilled to welcome VCA to the Mars family and to our portfolio of brands and businesses around the world,” said Grant F. Reid., the Chief Executive Officer of Mars. “VCA is a leader across pet health care and the opportunity we see together—for pets, pet owners, veterinarians and other pet care providers —is tremendous.”
“We have great respect for VCA, with whom we share many common values and a strong commitment to pet care. Together, we will be able to provide even greater value, better service and higher quality care to pets and pet owners,” Grant added in the statement.
In addition to the snacks business, Mars also committed to pet care industry and veterinary profession for years. After the acquisition, the deal will help promoting Mars to create a better world for pets.
“Joining the Mars family of brands provides significant value to our stockholders while also preserving the Company’s values and a culture focused on investing in our people and facilities to promote excellence in pet care and long-term growth,” said Bob Antin, the Chief Executive Officer of VCA.
The deal was agreed unanimously by board of directors of both companies. Morgan Stanley and BDT will be the advisors of Mars, and Barclays will be advisor of VCA.