Cressey & Co. has acquired a majority stake in VetCor Professional Practices, an owner and operaror of 41 full-service animal hospitals in the U.S. No financial terms were disclosed for the deal, which included leveraged financing and an equity co-investment from Golub Capital.
VetCor Professional Practices, a leading owner and operator of full-service animal hospitals in the U.S., today announced that it has received a growth investment from Cressey & Company, a private equity firm focused on building leading healthcare services companies. As a result of the transaction, Cressey & Company has acquired a majority ownership position in VetCor, with the Company’s management team, led by President Daniel J. Adams, obtaining a significant equity interest.
“Dan and his team have built a well-positioned and growing company with an attractive balance of clinical excellence and customer service,” said Cressey & Company Principal Merrick Axel. “We share their view of what it takes to be successful in this environment and are delighted to be their partner.”
Cressey & Company targeted an investment in the animal health industry through its intensive investment screening process. “Our research identified this as an attractive industry, and subsequently identified VetCor and its management team as a great fit for us,” said Cressey & Company Partner Ralph Davis. “We believe that we can help them build on their success and continue VetCor’s impressive record of growth and operational excellence for the benefit of all the company’s stakeholders.”
VetCor, through 41 unique hospital facilities in 13 U.S. states, focuses on caring for the health and well-being of companion animals. VetCor’s more than 130 veterinarians and nearly 500 support staff provide a full range of general medical and surgical services, as well as pharmaceutical and ancillary services such as boarding, grooming and pet products. VetCor was founded in 1997 and has established itself as one of the leading veterinary care providers by delivering attentive services and care to pets and their owners and by fostering a work environment that empowers and rewards professionals for exceptional service.
“Cressey & Company’s investment is a significant milestone for VetCor and our many talented veterinarians and support staff,” said VetCor President Daniel J. Adams. “The investment, which will be seamless to our clients and staff members, is a testament to all that we have accomplished together since our inception and underscores the growth opportunities we have before us. Cressey & Company understands healthcare services businesses and their growth drivers well. We welcome them to our team and are looking forward to benefiting from their experience to enhance our operations and pursue the many attractive initiatives that we think can help us sustain our growth well into the future.”
“Our investment in VetCor fits perfectly within our model of identifying and working actively with exceptional management teams to build leading healthcare businesses,” said Cressey & Company Partner Bryan Cressey. “VetCor is a high-quality company that operates in a growing and highly fragmented market that has a number of favorable secular trends at its back. We see many expansion opportunities for VetCor and we are ready to help Dan and his team identify and capitalize upon them.”
Golub Capital has provided a one-loan financing and an equity co-investment in support of the transaction. Ropes & Gray LLP served as legal advisor to Cressey & Company.
VetCor owns and operates a national family of 41 exceptional veterinary hospitals with over 130 veterinarians and nearly 500 supporting staff members. The Company’s philosophy is that each hospital’s success is founded in its community and must be led by individuals who understand and give back to that community. The bond that VetCor’s caring veterinarians and staff form with pets and their owners is the heart of the Company’s practice. VetCor is proud of its reputation for promoting the individual image of each of its hospitals, offering a family friendly work environment and providing the opportunity for each of its hospitals to determine its own medical direction and protocols. VetCor’s mission is to provide the best veterinary care and exceptional service to its patients and the people who love them. More information about the Company can be found at www.vetcor.com.
About Cressey & Company LP
Cressey & Company LP, with offices in Chicago and Nashville, is a private investment firm focused on the healthcare industry. The principals of the firm have been active healthcare investors for nearly three decades and have invested in a wide range of healthcare businesses. Including its three prior funds, the Cressey & Company team has invested and managed nearly $1 billion in investments in healthcare services, facilities and provider businesses. Cressey & Company seeks to invest in high-potential segments of the U.S. healthcare market and apply its skills and expertise – along with its capital – to enhance the performance and accelerate the growth of its portfolio companies. More information about Cressey & Company is available at www.cresseyco.com.