Dominating in the animal health market; Covetrus and MWI Animal Health agree to merge in $3.5 billion deal

Covetrus and MWI Animal Health have entered into a definitive agreement to merge, creating a combined animal health platform valued at $3.5 billion in enterprise value for MWI, according to a company announcement.

Under the transaction, Cencora (COR), MWI’s parent company, will receive $1.25 billion in cash proceeds, $800 million in preferred equity, and retain a 34.3% non-controlling common equity stake in the merged entity. The deal values MWI above Cencora’s current book value for the business.

The merger combines MWI’s distribution capabilities in companion and production animal health with Covetrus’ technology-enabled solutions for veterinarians. Covetrus serves more than 100,000 customers worldwide with over 5,000 employees, while MWI operates as a global provider of animal health products and services.

“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,” said Ben Wolin, President and Chief Executive Officer of Covetrus.