Conshohoken-based Cencora is spinning off its MWI Animal Health subsidiary which is merging with Covetrus, an animal health technology and services company.
The combined Covetrus and MWI Animal Health (MWI) company will offer a comprehensive animal health platform.
“Our mission has always been to empower veterinary practices to work smarter and deliver better care,” Ben Wolin, president and CEO of Covetrus, said. “By bringing MWI’s strong distribution capabilities and expertise to our business, we can offer more solutions to more customers, improve logistics, create savings and develop innovative new ways to support the animal health ecosystem, including veterinarians, producers, dealers, manufacturers, distributors and pet parents. This combination is about making animal healthcare more affordable and accessible, and we remain committed to driving innovation across the industry.”
Upon closing, Cencora will receive upfront cash proceeds of $1.25 billion, $800 million in preferred equity and $1.45 billion paid in common equity in the combined company. It will have a non-controlling 34.3 percent common equity stake in the combined company.
“As the animal health sector has grown and developed, so too have the needs of MWI’s stakeholders. This transaction positions MWI for success with a partner strategically focused on and dedicated to animal health, while allowing Cencora to further invest in our key growth priorities,” Bob Mauch, president and CEO of Cencora, said. “By joining with Covetrus, MWI will continue its longstanding 50-year legacy of providing exceptional service and efficiency to the animal health industry.”
The combined company will seek to ensure that veterinary practices and animal health professionals have access to a broader range of products and solutions for both companion and large animals.
“MWI and Covetrus share a common vision to support our customers, manufacturer partners and innovators to advance animal care. The combination of MWI’s supply chain expertise, innovation and trusted customer relationships in companion and production animal health with Covetrus’ tech-enabled solutions for veterinarians will equip us to more effectively serve all our stakeholders,” Steve Shell, SVP and president, MWI Animal Health, said. “On behalf of MWI, I am excited for our teams to come together and advance our shared mission of improving outcomes for animals and the experiences of their caregivers.”
The completion of the transaction is subject to the satisfaction of customary closing conditions, including the necessary regulatory approvals.