Veterinary Acquisitions in 2020

Destination Pet has completed the acquisition of Exceptional Pets, a five-location pet care operator in the Phoenix, Arizona metropolitan area founded in 2019 by Exceptional Healthcare. The deal expands Destination Pet's footprint into the Phoenix market and adds specialty retail, grooming, boarding and other pet services to its integrated veterinary and pet-care platform.

Swedencare AB (publ) acquired the operations of US-based Animal Pharmaceuticals Inc. for an initial purchase price of USD 15 million (approx. 131 million SEK) plus a potential earnout of up to USD 10 million; consideration includes cash and a directed new share issue. The deal (closed via newly established US subsidiary Animal Pharm Care USA, Inc.) adds a portfolio of supplements and topical veterinary products sold to ~8,500 US veterinary clinics and positions founder Jason Braun to lead the business and become a major Swedencare shareholder.

Valsoft Corporation Inc., a Canadian acquirer and developer of vertical market software businesses, acquired Asteris, the provider of the Keystone Software Suite veterinary diagnostic imaging and teleconsultation platform. The acquisition, effective August 7, 2020, brings Valsoft into the animal health vertical while Asteris’ US-based team — including co-founder Jason Otis — will remain in place to continue product development and customer support.

Wedgewood Pharmacy, a portfolio company of New Harbor Capital, has reached definitive agreements to acquire the San Jose, California assets of Leiters Enterprises (a 22,000 sq ft FDA-registered 503B outsourcing facility) and to acquire Wildlife Pharmaceuticals, Inc. and its subsidiary ZooPharm. The 503B facility will operate as Wedgewood Connect and is expected to begin releasing select sterile injectables and ophthalmics in Q4 2020; both transactions are subject to closing timelines and regulatory approvals.

Destination Pet, a pet health and services platform backed by LetterOne (L1 Health), has completed the acquisition of VitalPet. The deal adds 24 veterinary hospitals and approximately 420 employees across seven states to Destination Pet's network, expanding its veterinary, boarding, grooming and training services footprint.

Cortec Group (via Cortec Fund VI) completed a growth recapitalization of Lap of Love Veterinary Hospice, partnering with founders Dr. Dani McVety and Dr. Mary Gardner. The investment will support Lap of Love's continued geographic expansion, service offering growth, and scaling of its national in-home end-of-life care network for companion animals.

Rarebreed Veterinary Partners, a Portland, Maine-based technology-enabled animal health platform, acquired a majority stake in Maine Veterinary Medical Center (MVMC), a 20,000-square-foot specialty/referral veterinary hospital in Scarborough, Maine. MVMC employs about 150 veterinary professionals (including 21 specialty doctors); as part of the deal MVMC doctors and staff received equity alongside Rarebreed, and deal terms were not disclosed.

SAGE Veterinary Centers has partnered with Mid‑Columbia Pet Emergency Service to add the Pasco, Washington emergency hospital to SAGE's community of hospitals. The deal expands SAGE's presence in central Washington and aims to enhance regional emergency and intensive care for companion animals through collaboration with local referring veterinarians.

Regency Pet LLC announced a partnership with Hinsdale Pet Memorial Services to expand its pet aftercare platform into the Midwest, bringing three locations — Hinsdale Animal Cemetery and Pet Crematory (Willowbrook, IL), Rolling Acres Memorial Gardens (Kansas City, MO) and Loving Hearts Pet Memorial Services (Eureka, MO) — into its network. The Remkus family will remain involved and assume senior roles at Regency as part of the transition, supporting Regency's national expansion of pet aftercare services.

Ecolab Inc. has agreed to acquire CID Lines, a Belgium-based provider of livestock biosecurity, disinfectants and veterinary medicinal products, from the IK VII Fund (advised by IK Investment Partners) and other shareholders. The transaction is subject to customary closing conditions and regulatory approvals; IK had partnered with CID Lines since January 2016 and supported the company's international growth.