Patient Square Acquires Patterson for $4.1 Billion

Animal and dental health equipment supplier Patterson Companies, Inc. (PDCO) entered a merger agreement on December 11, 2024, to be taken private by health investment firm Patient Square Capital for $4.1 billion.

Deal Structure:

Under the terms of the agreement, Patterson shareholders will receive $31.35 in cash per share, representing a premium of 35.66% from the stock’s last close.

Company Profile:

Patterson is a leading distributor of dental and animal health products, technologies, and services in North America and the U.K., headquartered in Saint Paul, Minnesota.

Patient Square is a healthcare-focused investment firm managing approximately $11 billion in assets as of September 30, 2024. The firm partners with companies and management teams to invest in innovative products, services, and technologies that enhance health outcomes and improve patient lives.

Deal Details and Timeline:

The deal is expected to close in the fourth quarter of Patterson’s fiscal 2025 ending April 2025.

The deal “follows a review of strategic alternatives by the Board of Directors,” said Don Zurbay, President and Chief Executive Officer of Patterson.

The deal will be funded using a combination of equity from Patient Square, and debt arranged by Citi, UBS Investment Bank, and Wells Fargo, who are also serving as Patient Square’s financial advisors.

The merger agreement includes a 40-day “go-shop” period, allowing Patterson’s Board and its advisors to look for other potential buyers. This go-shop period will end on January 20, 2025.

Patient Square is acquiring Patterson at 8.10 times its EBITDA.

Deal Metrics:

For a more comprehensive analysis of this M&A transaction, kindly visit the Deal Metrics page here:

Deal Metrics for the acquisition of Patterson Companies, Inc. (PDCO) by Patient Square Capital

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• A chronology chart of the merger from announcement to completion or termination.
• Each event as the merger undergoes the expiration of the HSR period, regulatory approvals, shareholder votes, among others.
• Access to news and SEC filings.
• A history of deal updates.
• And much more.

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Editor’s Note: Baranjot Kaur contributed to this article