Covetrus, MWI Animal Health to Merge in Deal Valued at $3.5 Billion

Covetrus and MWI Animal Health will merge, creating a combined animal health platform, according to an announcement from the organizations. The agreement will allow Cencora to shift MWI Animal Health as it focuses on other key growth priorities outside of animal health, while retaining a non-controlling stake in the newly combined business.

Cencora has been “doubling down on core operations,” per Reuters, and is divesting its non-core businesses.

The transaction marks a notable shift in the animal health industry, with a major player in distribution and technology joining forces. Stay tuned for more news and commentary from Vet-Advantage.

Transaction Details:

• According to an announcement from Cencora and Covetrus, the deal, which is subject to regulatory approvals, values MWI at an enterprise value of $3.5 billion.
• Cencora will reportedly receive $1.25 billion in cash and $800 million of preferred equity.
• Cencora will retain an equity stake of 34.3% in the company.

What They’re Saying:

Ben Wolin, President and Chief Executive Officer of Covetrus, Bob Mauch, President and Chief Executive Officer of Cencora, and Steve Shell, SVP and President, MWI Animal Health issued the following statements in a release:

Wolin: “Our mission has always been to empower veterinary practices to work smarter and deliver better care. 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.”

Mauch: “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. By joining with Covetrus, MWI will continue its longstanding 50-year legacy of providing exceptional service and efficiency to the animal health industry.”

Shell: “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. 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.”