Swedish private equity firm EQT to acquire VetPartners for $1bn-plus

Swedish private equity firm EQT Partners is poised to sign on the dotted line to acquire one of Australia’s largest veterinary chains, VetPartners.

Street Talk can reveal EQT dealmakers, Frank Heckes and David Forde, have agreed terms with sell-side adviser Jefferies and the buyout firm has been anointed preferred bidder.

EQT was understood to have bid upwards of $1.4 billion in the first round – giving VetPartners the same multiple implied by TPG Capital’s sale of a 45 percent stake in GreenCross last year. However, limited partner sources suggested the final agreed price was slightly lower following a period of more in-depth due diligence.

As this column reported last week, binding offers for the up-for-grabs veterinary chain, which makes about $131 million a year, were received from EQT and rival private equity firm Affinity Equity Partners.

The fast-tracked auction was being run by Jefferies with expectations of a circa $1.4 billion sale. Affinity Equity Partners had Macquarie Capital’s bankers while EQT was being advised by Morgan Stanley.

VetPartners has 267 clinics in Australia, New Zealand, and Singapore, which helped it make $661 million in revenue and $131 million EBITDA for the 2023 financial year. The business, whose global parent is National Veterinary Associates, first caught EQT’s attention in August.

The buyout giant has chased furry deals aggressively over the past decade. It has owned European and North American vet roll-up IVC Evidensia and its 2500 clinics since 2014. It also invested in British insurer ManyPets and tag-teamed with the Abu Dhabi Investment Authority to take London-listed veterinary drugmaker Dechra private for £4.46 billion ($8.9 billion).

EQT opened a shop in Australia in February 2020 with just three people. It’s since grown to over 50, deployed $8 billion on deals in the country, and is among the firms that considered a run at ASX-listed Healius, the healthcare services provider subject to a potential takeover by Australian Clinical Labs. EQT also teamed up with Regal Partners last November to try to acquire Perpetual.

Fast deal

Jefferies has been shepherding suitors through a tight timetable, thanks to NVA’s plan to float the leftover business. Interested parties, which were understood to include Affinity, Goldman Sachs’ private equity division, and Permira Private Equity, were given only a few weeks to make up their minds about VetPartners and asked to lob non-binding indicative bids by the end of August.

With the sale nearing completion, California headquartered NVA plans to split the $US6 billion-a-year ($9 billion) global business into two separate units: Ethos Veterinary Health would have 145 animal hospitals and $US2 billion annual revenue; and NVA would have 1400 locations including animal general practices, equine hospitals and pet resorts.

Image by: EQT Partners

Shopping Cart

Media Kit

    Data Protection

    Personal Data (“Data”) submitted for Media Kit (“Media Kit”), and/or collected in the form of first name, last name, email address and other contact details may be used for the purposes of inviting you to future events and for reaching out to you with content which may be of interest to you. For these purposes, The Digital Banker will share the Data with our associate companies (including event and content sponsors) to promote their products and services. You will also be automatically subscribed as a user on www.thedigitalbanker.com. If you would like to opt-out, email us at [email protected].

    By clicking Submit, you acknowledge that you consent/ have sufficient informed consent to the collection, use and disclosure of Data as set out above.

    The Digital Banker Summit

    Moving on from FTX: is 2023 the year of CBDCs?

    Indonesia, Jakarta

    Thailand, Bangkok

    Philippines, Manila

    Contact Us

      Data Protection

      The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

      Request Nomination Pack

        Data Protection

        The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

        Registration Form

          Data Protection

          The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

          Registration Form

            Data Protection

            The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

            Registration Form

              Data Protection

              The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

              Registration Form

                Data Protection

                The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

                Registration Form

                  Data Protection

                  The information you provide will be held on our database and may be used to keep you informed of our and our associate companies’ products and for selected third party mailings. Please tick the box if you would prefer not to be contacted for these purposes:

                  The world’s preeminent Private Banks and Wealth Managers are demonstrating a committed drive in innovation, advisory, new products and services to meet the sophisticated needs of their clients.

                  COVID-19
                  Amid economic activity revival on the back of the Covid-19 vaccine program, organisations moving from business continuity plans to stable working environments, together with the slightest improvement in unemployment numbers, forced the world to adjust to new realities. Coming to terms with the “new normal”, global investors are now on the look-out for attractive and stable investment opportunities.

                  Needs of Private Wealth customers and families worldwide have drastically changed due to the pandemic and banks have had to accelerate efforts to deploy a multi-channel service strategy and safeguard clients’ businesses and wealth against negative impacts of economic uncertainly.

                  The Global Private Banking Innovation Awards will recognise the world’s best private banks, wealth managers and asset managers that are championing innovation across advisory, service, products, customer experience and more.

                  Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. 

                  Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.

                  Request Nomination Pack

                  Error: Contact form not found.