Patterson Companies is moving closer to becoming a private company after its shareholders approved its acquisition by investment firm Patient Square Capital at a special meeting on Tuesday.
“The Patterson team is excited about this partnership with Patient Square Capital and beginning our next chapter as a private company,” said Don Zurbay, Patterson’s president and chief executive officer.
The approval follows a merger agreement dated Dec. 10, under which Patient Square Capital will acquire Patterson in an all-cash transaction valued at approximately $4.1 billion. The deal offers Patterson shareholders $31.35 per share of common stock. Patient Square Capital had about $12 billion in assets under management as of Dec. 31.
Patterson expects the transaction to close later this month. Upon completion, the company will become privately held, and its common stock will no longer be traded on the Nasdaq Global Select Market.
Private equity trend
Private equity firms continue to consolidate the U.S. healthcare services market, including dental laboratories, clinics and equipment suppliers such as Patterson. Last year, Steris, an American-Irish medical equipment company specializing in sterilization and surgical products, sold its dental segment, HuFriedyGroup, to private equity firm Peak Rock Capital in a $787.5-million deal. KKR & Co. last year also became the largest non-index fund shareholder in Henry Schein, taking a 12 per cent stake with the option to increase it to nearly 15 per cent.
Private investors are drawn to healthcare acquisitions for their potential operational efficiencies, market expansion opportunities and synergies across acquired businesses.
“We believe this collaboration will enable us to continue investing in serving our customers and our business, accelerate our growth, and be well-positioned to achieve our strategic priorities,” Zurbay said.