With help from private equity firm Leonard Green & Partners LP, Lextron Inc. will pay $111 million in cash to buy rival Animal Health International, Reuters reported. Lextron offered $4.25 per share for Animal Health, representing an 11% premium over the company’s closing price Friday. Animal Health distributes drugs, vaccines and other veterinary products.
(Reuters) – Lextron Inc plans to buy rival Animal Health International for $111 million in cash to form one of the largest animal health businesses, the companies said.
Under the deal, privately held Lextron will acquire all outstanding shares of Animal Health for $4.25 per share, with support from funds affiliated to private equity firm Leonard Green and Partners LP.
Lextron’s offer represents a premium of 11 percent to Animal Health’s Friday close, the companies said.
Lextron, which expects to close the deal by June 30, will also assume about $140 million of Animal Health’s debt.
Animal Health distributes drugs, vaccines and other veterinary products.
The companies said the combined organisation will be called Animal Health International Inc.
Piper Jaffray is serving as financial adviser to Animal Health while William Blair & Co is serving as financial adviser to Lextron.
Shares of Animal Health closed at $3.83 on Friday on Nasdaq. (Reporting by Anand Basu in Bangalore; Editing by Sriraj Kalluvila)