Covetrus gains on buyout offer from CD&R and TPG

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• Animal health company, Covetrus, Inc. (NASDAQ:CVET) has added ~14% in the pre-market Friday after disclosing that Clayton, Dubilier & Rice, LLC, and TPG offered to buy all of the outstanding shares of its common stock for $21.00 per share in cash.
• CD&R Holdings already owns ~33.7 million shares of Covetrus (CVET) common stock, and the sponsors made the offer on Thursday to buy the shares of the common stock that are not under their ownership, the company said in a regulatory filing.
• The offer is currently under consideration of the Covetrus’ (CVET) board of directors and will not lead to any legal obligations unless the parties ink a definitive agreement, company added.

• Underperforming the broader market, Covetrus (CVET) has lost more than 30% over the past 12 months, as shown in this graph.

Comments

[algo41]

I imagine acquirer can vote their own, currently owned shares to approve, but I am not sure. Also, I think rules may differ in say Netherlands. Anyone know?

[Wuffy]

Management missteps have caused this company to crater. Be lucky you get 21 if that’s the final offer.

[simonf]

$21 way too low ….. no value assigned to the potential of the business over the next few years as new strategy gains traction. Happy to turn down offer and take my chances that the share price will be materially higher in a few years.

[orange_tree]

so as someone with some fair amount of shares, what does this mean exactly?

[mike ekim]

@orange_tree you get $21 a share for your shares...brokerage co. will credit your acct when the deal closes...i don't own the stock though

[Bogiedog]

Need way more than $21/sh for my shares. Animal healthcare companies should be trading at a premium. This price is not even close to the 52 week high.