Mars has agreed to acquire all outstanding shares of VCA (NASDAQ: WOOF) for $93 apiece, a total transaction value of approximately $9.1 billion that includes $1.4 billion in outstanding debt. Founded in 1986, VCA operates nearly 800 animal hospitals and some 60 diagnostic facilities in the US and Canada. Mars is best known as the maker of candy like M&Ms and Snickers, but the company also operates pet brands such as Pedigree and Whiskas and owns Banfield Pet Hospital and Bluepearl, among other pet-centric companies.
The deal represents a premium of roughly 31% to VCA's closing stock price on Friday and approximately 41% over its 30-day volume weighted average price. The agreement was unanimously approved by the boards of both companies and is expected to close in 3Q. VCA's stock climbed 28% on the news to end Monday trading at $90.79.