Morgan Stanley Capital to Sell Pathway Vet for $2B

Morgan Stanley Capital Partners agreed to sell veterinary clinic chain Pathway Vet Alliance LLC to TSG Consumer Partners in a deal worth at least $2 billion, including debt, reported the Wall Street Journal.

The private-equity arm of Morgan Stanley Investment Management bought a stake in Pathway Vet in 2016 and expanded its operations through acquisitions. Further details of the deal weren’t available and it’s unclear how much debt TSG plans to use to finance the transaction, according to Dow Jones.

Pet owners in the US are expected to spend nearly $100 billion on their pets this year on everything from pet food to toys, an increase of around $5 billion on last year, according to research produced by the American Pet Products Association. Nearly a third of this expenditure is estimated to go toward paying vet bills, the research shows.

These trends have attracted large companies to the sector, including Mars Inc., best known for its candy bars, and consumer-focused investor JAB Holding  which owns Krispy Kreme doughnuts.

Last year, for example, JAB bought a stake in Compassion-First Pet Hospitals, a chain of US vet clinics, in a $1.22 billion deal. Mars bought pet health business AniCura Holding AB for close to €2 billion the year before.

Full Content: Wall Street Journal

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