CVC Capital Partners acquires Medivet stake in £1bn+ deal

CVC Capital Partners has acquired a majority stake in veterinary group Medivet in a deal reportedly worth more than £1 billion. Medivet had been part owned by private equity firm Inflexion since 2016 and since then has established itself as one of the major drivers of the surge of consolidation in the UK’s veterinary sector, growing to more than 350 branches in the UK.

Corporate Financier ranked Medivet as the UK’s ninth most acquisitive company in 2019. One of three veterinary firms in the top ten, with IVC Evidensia and VetPartners ranked first and second. Earlier this year, buyout firm Silver Lake and Nestle acquired a €3.5 billion (£2.99 billion) stake in IVC Evidensia – a sale which valued the entire business at over £10 billion.

The sector remains highly fragmented within the UK and across Europe and, with demand for vet services surging due to the increase in pet ownership during COVID-19, Inflexion opted to cash in on their investment, hiring HSBC to market the business for sale in April 2021.

Following an auction process that generated substantial interest, CVC Capital Partners is set to complete the acquisition of a majority stake in the business by the end of this year. The backing of CVC will enable Medivet to continue with its strategy of organic and acquisitive growth, with one of the firm’s major aims being to expand on its portfolio of 50 sites in Europe.

Medivet CEO Deirdre Burns said: “I am delighted that CVC has decided for its funds’ to invest in Medivet to fuel and support our ambitions and growth plans for the UK and Europe, and look forward to working together to bring them to fruition.”

“Over the past 34 years, our central partners, branch partners and all our people have worked hard to build an outstanding business, centred on delivering exceptional care and service to our patients and clients.”

CVC Managing Partner and co-head of UK Investments Dominic Murphy added: “Medivet is a fast-growing and attractive business, where we are delighted to be backing the management team, led by CEO Deirdre Burns, to further grow the UK business and accelerate international expansion.”

“CVC Funds have significant experience investing in similar service-based healthcare businesses across Europe, and believe we can use these learnings to support the team effectively.”


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