After Patterson Companies, Inc. (NASDAQ: PDCO) announced a final deal to be bought by Patient Square Capital, a healthcare-focused investment group, the company’s shares shot up 34.40% to $31.06.
A cash offer of $31.35 per share, or 49% more than PDCO’s 30-day volume-weighted average price (VWAP) ending December 4, 2024, is part of the purchase terms. Including the refinancing of Patterson’s receivables facilities, the deal is estimated to be worth $4.1 billion.
An important turning point for Patterson Companies
This deal marks a turning point in Patterson’s development, providing shareholders with immediate profit while setting up the business for long-term success. To guarantee the best results, the PDCO Board of Directors thoroughly examined the strategy options with the assistance of outside consultants.
The agreement demonstrates Patient Square Capital’s appreciation of Patterson’s strong brand and skilled workforce, which align with their shared principles of innovation and customer service.
Transaction Information and Management
The deal was unanimously authorized by Patterson’s Board of Directors, with the exception of President and CEO Mark Walchirk Zurbay, who was not included since he was a Management Director. Zurbay refrained from participating in conversations or making decisions about the transaction in accordance with best standards for governance.
Patient Square Equity Partners, LP will provide equity investment for the purchase, while Citi, UBS Investment Bank, and Wells Fargo Bank N.A. will lead the loan financing.
Timeline and Prospects for the Future
In the fourth quarter of PDCO’s fiscal year 2025, the transaction is anticipated to close, subject to usual closing conditions and regulatory clearances. Additionally, a 40-day “go-shop” time is included in the agreement to allow the Board to consider other purchase bids. After it is finished, Patterson (PDCO) will cease to be listed publicly on the NASDAQ Global Select Market and become a privately held company.
The business will continue to serve clients and promote sustainable growth by keeping its headquarters in St. Paul, Minnesota. With improved resources and a strategic emphasis on providing value to stakeholders, this purchase marks the beginning of a new era for PDCO.
