Mars rover

9 January 2017 By Jennifer Saba Follow @jennifersaba

The candy giant is buying VCA for $7.7 bln plus debt. The U.S. animal-healthcare provider regularly swallows smaller vet outfits in a growing $63 bln industry Mars already knows. That makes the 31 pct premium look digestible. The purchase also hedges against any sugar backlash.

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Mars on Jan. 9 said it agreed to buy pet healthcare service provider VCA for $9.1 billion, including $1.4 billion in outstanding debt. Mars will pay $93 per share in cash to VCA shareholders, representing a 31 percent premium over VCA's closing price on Jan. 6.

VCA will become part of Mars' pet-care division, which includes veterinary services businesses Banfield Pet Hospital, Bluepearl and Pet Partners. The company will operate as a distinct unit under Bob Antin, its chief executive and a founder.

Mars is a privately held company known for candy including M&Ms and Snickers. It has more than $35 billion in annual sales. Its pet-care division is its second-largest, together with Mars Wrigley Confectionery providing 90 percent of revenue.

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