Shares of Patterson Companies, Inc. (NASDAQ:PDCO) saw a significant rise, up 35% Wednesday morning, following the announcement of an acquisition deal by Patient Square Capital, a health care investment firm. The agreement stipulates that Patterson shareholders will receive $31.35 per share in cash, which is about a 49% premium over the stock's 30-day volume-weighted average price as of December 4, 2024, valuing the transaction at roughly $4.1 billion, including the refinancing of Patterson’s receivables facilities.
Don Zurbay, President and CEO of Patterson, expressed enthusiasm about the deal, noting that it not only offers immediate value to shareholders but also positions the company for ongoing investment and growth. He highlighted the alignment of values and long-term vision between Patterson and Patient Square, making them a suitable partner for the company’s future.
Jim Momtazee, Managing Partner at Patient Square, complimented Patterson's legacy and the value it provides, signaling a strong commitment to the company's continued growth.
The board of directors of Patterson, with the exception of Zurbay due to his management role, has given unanimous approval to the acquisition. The financing for this transaction will be a mix of equity financing from Patient Square Equity Partners, LP, and debt financing led by Citi, UBS Investment Bank, and Wells Fargo (NYSE:WFC) Bank N.A.
The deal is anticipated to be finalized in the fourth quarter of Patterson's fiscal year 2025, subject to approval from shareholders, regulatory bodies, and the fulfillment of other standard closing conditions. Additionally, the agreement allows for a 40-day "go-shop" period, during which Patterson’s board may seek and consider alternative acquisition offers.
Once the transaction is completed, Patterson will operate as a privately held entity and its shares will cease trading on the NASDAQ Global Select Market. The company will continue to be headquartered in St. Paul, Minnesota.
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