VCA Stock Climbs On Mars' $9.1 Bln Takeover Deal

(RTTNews) - Shares of pet healthcare company VCA Inc. (WOOF) gained around 28 percent on Monday's trading on Nasdaq after its $9.1 billion "going private" deal with Mars, Inc.

Under the agreement between both companies, privately held Mars, which has various businesses including Petcare, Chocolate, and Wrigley, will acquire VCA for $93 per share. The total value of approximately $9.1 billion includes $1.4 billion of debt.

A diverse pet healthcare company, VCA operates across four divisions including veterinary services, laboratory diagnostics, imaging equipment and medical technology, and pet care services.

Following the deal, VCA will be a distinct and separate business unit within Mars Petcare business, which has been an important part of Mars for over 80 years.

The transaction price is a premium of approximately 41 percent over VCA's 30-day volume weighted average price on January 6, and a premium of approximately 31 percent over VCA's closing price on January 6.

The agreement has been unanimously approved by the boards of directors of both companies. The deal is expected to close in the third quarter 2017, subject to certain customary closing conditions.

VCA, since founding in 1986, has grown from one facility in Los Angeles to nearly 800 animal hospitals with 60 diagnostic laboratories throughout the United States and Canada.

Upon completion of the deal, VCA will operate within Mars Petcare, alongside its other Veterinary Services businesses, BANFIELD Pet Hospital, BLUEPEARL and PET PARTNERS. VCA will continue to be led by its founder, Chief Executive Officer, President, and Chairman Bob Antin.

The company will remain headquartered in Los Angeles, California.

Morgan Stanley & Co. LLC and BDT & Co. are Mars' financial advisors, while J.P. Morgan is providing financing to Mars. Barclays is acting as exclusive financial advisor to VCA.

VCA shares settled at $90.79 on Monday, up 28.29 percent.