Covetrus, the animal health technology and service company, based in Portland, is being sold to two private equity firms for $4 billion. The buyers plan to take Covetrus private.
The buyers, Clayton, Dubilier & Rice, and TPG Capital, will pay stockholders $21 dollars per share. Covetrus, in a press release, says that would amount to a 39% premium over the average share price for the 30 days ending May 13.
Covetrus has 5,700 employees worldwide, 1,000 of them in Maine. The company was formed in 2019 by the merger of Portland-based Vets First Choice and the animal health division of Henry Schein, a Melville, New York company.
The merged entity got off to a rocky start, with a $1 billion loss and the demotion of two executives following the filing of an investor suit alleging the company misrepresented potential financial successes.
In the last couple of years, Covetrus' financial condition has improved and its stock price has risen. The company is building a new headquarters building near Portland's eastern waterfront. In the press release, Covetrus says current management, including president and chief executive Benjamin Wolin are expected to continue leading the company. And it plans to maintain its headquarters in Portland.
