By Mackenzie Tatananni
Patterson Cos. stock rose sharply Wednesday after the company announced it would be acquired by private-equity firm Patient Square Capital in a $4.1 billion deal.
Shares of the healthcare distributor jumped 34% to $31.10, marking the largest same-day percent increase on record, according to Dow Jones Market Data.
Patterson, a distributor specializing in equipment for the animal health and dental markets, went up for sale after posting mixed earnings for its second fiscal quarter ended Oct. 26. President and Chief Executive Don Zurbay acknowledged the "challenging end market environment" in a news release last week.
Under the terms of the deal, shareholders will receive $31.35 in cash per share, representing a 49% premium to the company's 30-day volume-weighted average price ended Dec. 4.
The agreement includes a 40-day "go-shop" period allowing Patterson to seek other acquisition proposals. The deal is expected to close in the fourth quarter of fiscal 2025, after which Patterson will become private and delist from the Nasdaq.
The decision followed "a review of strategic alternatives" by the company's board, Zurbay said.
Patterson posted adjusted earnings of 47 cents per share and net income of $26.8 million in its second fiscal quarter, down from 50 cents per share and net income of $40 million in the prior year. Wall Street was expecting 49 cents per share.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
December 11, 2024 08:10 ET (13:10 GMT)
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