Covetrus Eyes Acquisition of Cencora’s Veterinary Business

Covetrus is in early discussions to acquire the Veterinary division of Cencora Inc. and is reportedly seeking approximately $3 billion in financing to support the transaction. The funding would be used to refinance about $2 billion in existing debt and help cover acquisition costs. Covetrus was taken private in 2022 in a deal valued at roughly $4 billion and is backed by private equity firms Clayton Dubilier & Rice and TPG Inc. Private credit firms, including Blue Owl Capital, are believed to be involved in financing discussions. Neither company has publicly commented on the potential deal.

TPG Inc., a key investor in Covetrus, is an alternative asset management firm with a market capitalization of about $8.96 billion. The firm has faced financial pressure in recent years, including declining revenue growth, relatively low profitability, and elevated debt levels. Analysts have noted high valuation metrics, increased leverage, and greater stock volatility, factors that may influence investor sentiment as the acquisition discussions continue.