Mars rover

9 Jan 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.

This content is for Subscribers only

Context News

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.

Email a friend

Please complete the form below.

Required fields *