EQT ramps up its pet portfolio with $1.4b VetPartners play
Swedish private equity firm EQT Partners has agreed to buy VetPartners for approximately $1.4 billion, inking one of this year’s fastest transactions.
EQT’s dealmaker David Forde signed the dotted line for the veterinary chain on Tuesday, people familiar with the transaction said. Investment bankers gave prospective bidders less than a month to make offers for VetPartners as its parent National Veterinary Associates strengthened its balance sheet ahead of a potential initial public offering.
Swedish investor EQT already owns European vet practice IVC, it invested in British pet insurer ManyPets and also co-invested in vet drugmaker Dechra. Simon Schluter
Despite multiple parties’ interest, some private equity executives, who spoke under the condition of anonymity, bemoaned the sales process as too quick to determine a palatable valuation.
EQT’s experience with vet practices – namely its ownership of European peer IVC Evidensia – enabled it to conduct due diligence in the accelerated timeframe, people said.
Mr Forde, who co-heads EQT’s private equity business for Australia and New Zealand, said he was “impressed” by VetPartners’ leading position in the region, which comprises more than 1300 vets, and over 3000 nurses and support staff.
The approximate $1.4 billion value is based on roughly $131 million in annual earnings before interest, tax, depreciation and amortisation, Street Talk first reported earlier this month. On a pro forma adjusted basis, EBITDA for the 2023 financial year was $104 million.
Others who looked at VetPartners said earnings were closer to $90 million a year when accounting for about $40 million in corporate expenses, such as its headquarters.
EQT’s offer was also about 20 per cent higher than the
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