Patterson Shares Surge Following Acquisition Deal

Patterson Companies, Inc. (NASDAQ:PDCO) shares experienced a significant increase of 35% on Wednesday morning following the announcement of a buyout agreement by healthcare investment firm Patient Square Capital. The agreement calls for a cash payment of $31.35 per share to Patterson shareholders. This amount represents a premium of approximately 49% over the stock's 30-day volume-weighted average price as of December 4, 2024, and values the transaction at approximately $4.1 billion, including the refinancing of Patterson's receivable facilities.

Patterson's President and CEO, Don Zurbay, expressed enthusiasm regarding the agreement, stating that it provides shareholders with immediate value while positioning the company for ongoing investment and growth. He emphasized the alignment of values and long-term vision between Patterson and Patient Square, describing them as a suitable partner for the company's future.

Patient Square's Managing Partner, Jim Momtazee, praised Patterson's legacy and the value it has provided, signaling a strong commitment to the company's continued growth.

Patterson's board of directors unanimously approved the acquisition, excluding Zurbay due to his management role. The financing for the transaction will consist of a mix of equity financing from Patient Square Equity Partners, LP and debt financing led by Citi, UBS Investment Bank, and Wells Fargo Bank N.A.

The deal is expected to be completed in the fourth quarter of Patterson's fiscal year 2025, subject to the approval of shareholders and regulatory bodies, as well as the fulfillment of other standard closing conditions. Additionally, the agreement includes a 40-day "go-shop" period during which Patterson's board can seek and evaluate alternative acquisition offers.

Once completed, Patterson will operate as a private company and will cease to trade on the NASDAQ Global Select Market. The company will remain headquartered in St. Paul, Minnesota.