On Wednesday, Patient Square Capital, a healthcare investment firm, agreed to acquire Patterson Companies, Inc. ( PDCO ) , a dental and animal health product distributor, for approximately $4.1 billion.

Under the terms of the agreement, Patterson shareholders will receive $31.35 in cash per share, representing an approximately 49% premium to Patterson’s 30 calendar-day volume-weighted average price (VWAP) ending December 4, 2024 (the last trading day before Patterson announcing the evaluation of strategic alternatives).

Also Read: Patterson CEO Blames Q1 Drag On Change Healthcare Cyberattack, ‘Timing Of Corporate Expenses’

During its second-quarter earnings release, the company announced it is exploring strategic options, including a sale or merger, to boost shareholder value.

Earnings were mixed, “given the challenging end market environment,” said Patterson CEO Don Zurbay.

The company’s Board of Directors, excluding Zurbay given his position as a Management Director, has unanimously approved the transaction.

Consistent with the Patterson Companies’ commitment to strong governance practices, Zurbay has recused himself from participating in any deliberations or approvals related to the transaction.

The transaction will be financed through a combination of committed equity financing.

The transaction is expected to close in the fourth quarter of Patterson’s fiscal 2025

Upon completion of the transaction, Patterson will become a privately held company, and its common stock will no longer be traded on the NASDAQ.

Patterson will maintain its headquarters in St. Paul, Minnesota.

Price Action: PDCO stock is up 34.8% at $31.15 at the last check on Wednesday.

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