Patterson Companies will be acquired by Patient Square Capital for nearly $4.1 billion

The health-care investment firm Patient Square Capital (Patient Square) has recently acquired dental and animal health distributor Patterson Companies, with the deal valued at approximately $4.1 billion.¹

Under this deal, Patterson shareholders will receive $31.35 in cash per share. According to Patterson's announcement, this number represents "49% premium to Patterson's 30 calendar day volume-weighted average price (VWAP) ending December 4, 2024 (the last trading day prior to Patterson announcing the evaluation of strategic alternatives)."¹

Patterson's board of directors facilitated this deal with the approval of the company's president and CEO, Don Zurbay. Given his position within the company, Zurbay has recused himself from participating in any discourse surrounding the Patterson-Patient Square transaction.

However, he did announce that this deal "...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." He went on to note, "This transaction follows a review of strategic alternatives by our Board of Directors, with assistance from our independent advisors, maximizing our value and enabling Patterson to continue to execute our strategy well into the future."¹

Patient Square's managing partner, Jim Momtazee, also expressed enthusiasm following this announcement.

Future plans and impact

Moving forward, this transaction will be financed through services provided by Patient Square Equity Partners LP, with any debt financing being led by Citi, UBS Investment Bank, and Wells Fargo Bank. Following its completion, Patterson will become a private company, and its stock will no longer be traded on the NASDAQ Global Select Market. The transaction is expected to close during the fourth quarter of Patterson's 2025 fiscal year.¹

About the companies

Patterson distributes products, technologies, and business services and solutions for dental and animal health customers in North America and the UK.

Patient Square is a health-care investment firm that partners with growth-oriented companies and management teams offering health-related products and services.¹

Reference

1. Press release details. Patterson Companies, Inc. December 11, 2024. https://investor.pattersoncompanies.com/investor-relations/press-releases/press-release-details/2024/Patterson-Companies-Announces-Definitive-Agreement-to-Be-Acquired-by-Patient-Square-Capital-for-31.35-Per-Share-in-Cash/default.aspx