Allied To Sell Healthy Pet

Allied Capital has agreed to sell its majority equity interest in Healthy Pet Corp. to VCA Antech Inc. (Nasdaq: WOOF). The deal values HPC at approximately $153 million, and is expected to close later this quarter. HPC is a Shelton, Conn.-based operator of veterinary hospitals, and received its first backing from Allied Capital in 2005.



WASHINGTON–(BUSINESS WIRE)–Allied Capital Corporation (NYSE:ALD) announced today that it has signed a definitive agreement to sell its majority equity interest in Healthy Pet Corporation to VCA Antech, Inc. (NASDAQ:WOOF).

Based on the definitive agreement, Healthy Pet will sell for an enterprise value of approximately $153 million, subject to pre- and post-closing adjustments. Allied Capital expects to realize a gain on the equity interests sold of approximately $36 million, subject to pre- and post-closing adjustments. In addition, Allied Capital will be repaid approximately $78.5 million of debt outstanding to Healthy Pet. The transaction is expected to close in the second quarter of 2007, subject to certain closing conditions.

“Since Allied Capital first invested in Healthy Pet in 2005, we have worked closely with CEO Gino Volpacchio and his management team to support the company's consolidation strategy,” said Mike Grisius, Managing Director of Allied Capital. “With our strong financial resources and this team's deep industry knowledge, Healthy Pet has been successful in completing 13 facility acquisitions and building a dedicated lab business with significant strategic value.”

“The success of this growth strategy has positioned Healthy Pet as a leader in its industry,” added Benton Cummings, Managing Director of Allied Capital, “and made the company a highly attractive acquisition opportunity.”

“Allied Capital has been a true value-added partner for our company,” said Gino Volpacchio, CEO of Healthy Pet. “Their financial, managerial and operational support has been key to our company's success in building one of the largest operators of veterinary hospitals in the eastern United States.”

About Allied Capital

Allied Capital Corporation is a leading business development company (BDC) in the U.S. that invests private debt and equity capital in middle market businesses nationwide. Founded in 1958 and operating as a public company since 1960, Allied Capital has paid consistent or increasing regular, quarterly cash dividends annually to shareholders since 1963.

Allied Capital provides long-term debt and equity capital for management and sponsor-led buyouts, and for recapitalizations, acquisitions and growth of middle market companies. Allied Capital's one-stop financing capabilities include first and second lien senior loans, unitranche debt, junior or subordinated debt and equity. Allied Capital seeks to invest in stable, less cyclical companies that produce significant free cash flow and high returns on invested capital. At March 31, 2007, the Company's private finance portfolio included investments in 144 companies in a variety of industries. These companies currently generate aggregate revenues of over $13 billion and employ more than 90,000 people.

Headquartered in Washington, DC, Allied Capital offers shareholders the opportunity to participate in the private equity industry through an investment in its New York Stock Exchange-listed stock. Allied Capital invests in the American entrepreneurial economy by providing long-term capital and access to managerial resources often unavailable to middle market companies. For more information, please visit, call Allied Capital investor relations toll-free at (888) 818-5298, or e-mail us at

About Healthy Pet

Based in Shelton, CT, Healthy Pet was established in 1997 to consolidate the fragmented veterinary services industry through the acquisition of veterinary hospitals in the eastern United States. Healthy Pet owns and operates 44 veterinary hospitals and a laboratory business in ten states, including Massachusetts, Connecticut, Pennsylvania, New Jersey, Rhode Island, Georgia, Florida, South Carolina, Virginia and Vermont. Through its veterinary hospitals, the company offers medical and surgical services, specialized treatments, diagnostic services, pharmaceutical products as well as routine health exams and vaccinations. For more information, please visit

About VCA Antech, Inc.

VCA Antech owns, operates and manages the largest networks of freestanding veterinary hospitals and veterinary-exclusive clinical laboratories in the country, and supplies diagnostic imaging equipment to the veterinary industry. For more information, please visit

Forward-Looking Statements

The information contained in this press release contains forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements, and some of these factors are enumerated in Allied Capital's filings with the Securities and Exchange Commission.