M&A · Industrials · Retail-Drug Stores and Proprietary Stores
Clayton to acquire Covetrus, Inc.
Announced May 25, 2022 · Closed Oct 13, 2022
Deal value$4.00BEV $4.00B
Premium37.5%To unaffected price
EV / Adj. EBITDA19.2x0.9x EV / Revenue
ConsiderationAll cash$21.00 per share
Transaction
- Acquirer
- Clayton
- Target
- Covetrus, Inc.
- Buyer type
- Strategic
- Offer price per share
- $21.00
- Enterprise value
- $4.00B
- Status
- Closed Oct 13, 2022
Deal protections
- Break fee (target pays)
- $88.3M · 2.2%
- Reverse fee (buyer pays)
- $198M · 4.9%
- Go-shop
- No-shop
- Financing
- Committed · Santander
Advisors
- To the acquirer
- Deutsche Bank, UBS, BMO Capital Markets, Mizuho
- To the target
- Goldman Sachs, Lincoln International
Sector context · Industrials
- Comparable deals
- 68 in the prior 24 months
- Premium
- 37.5% vs. 47.0% sector median
- EV / Adj. EBITDA
- 19.2x vs. 11.0x sector median
- Break fee
- 2.2% vs. 2.8% sector median
Timeline
- AnnouncedMay 25, 2022
- Proxy filedJun 30, 2022
- Definitive proxySep 13, 2022
- Shareholder voteOct 11, 2022
- ClosedOct 13, 2022
Valuation · fairness opinions
Discounted cash flow$14.76$27.02
Discounted cash flow$17.32$27.73
Discounted cash flow$12.74$27.02
Premiums paid$22.33$25.52
Premiums paid$18.92$21.62
Offer $21.00
Implied value per Covetrus, Inc. share by analysis, from Goldman Sachs · DCF discount rate 9%–11.5%.