11:19 AM EST, 12/11/2024 (MT Newswires) -- Patterson Cos ( PDCO ). (PDCO) agreed to be acquired and taken private by health care investment firm Patient Square Capital in a deal worth $4.1 billion, including the refinancing of the dental and animal health equipment distributor's receivables facilities.

Shareholders of Patterson will receive $31.35 per share in cash, according to a joint statement released Wednesday. The consideration represents a roughly 49% premium to the company's 30-day average price as of Dec. 4, the last trading day before its announcement about evaluating strategic alternatives.

Patterson's stock surged 35% in Wednesday trading.

"Today's announcement marks an exciting next step in Patterson's evolution and delivers immediate and certain value for our shareholders and positions us to continue to invest in serving our customers and driving growth," Patterson Chief Executive Don Zurbay said in the statement.

The deal, which requires approval from regulators and shareholders, is expected to complete in the fourth quarter of Patterson's fiscal 2025. The transaction includes a "go-shop" period that allows the company to solicit alternative acquisition proposals.

Patterson aims to finance the transaction through committed equity provided by Patient Square Equity Partners and debt financing. The company will no longer trade publicly once the deal completes.

Last week, the company reported fiscal second-quarter adjusted earnings of $0.47 per share, down from $0.50 the year before. Sales increased 1.3% to $1.67 billion on an annual basis. At the time, Patterson said it expects adjusted EPS in a range of $2.25 to $2.35.

"Patient Square is excited to work closely with management on the next chapter of growth for the business building on its long and proud legacy," Jim Momtazee, managing partner at Patient Square Capital, said.

Price: 31.05, Change: +7.94, Percent Change: +34.36