Leading Animal Health Company Combines Practice, Prescription and Wellness Management for Better Vet-Client Relationships, Practice Revenues and Health Outcomes.
PORTLAND, Maine & IRVINE, Calif., June 30, 2021 – (BUSINESS WIRE) – Covetrus® (NASDAQ: CVET), a global leader in animal health technology and services, today announced a definitive agreement with VCP acquire, a market-leading veterinary wellness plan management platform serving approximately 1,000 veterinary practices with more than 350,000 pets currently benefiting from VCP-enabled wellness plans. The acquisition is expected to close in the third quarter, subject to customary closing conditions.
VCP’s technology platform and infrastructure will open new avenues for Covetrus to provide tools for today’s veterinarians to cultivate closer relationships with their pets and achieve better business and health outcomes. VCP’s solutions help veterinarians support the growing number of pet parents looking for holistic, highly customized wellness plans for their trusted veterinarian.
As a leading provider of wellness solutions, VCP technology helps veterinarians deliver comprehensive wellness, treatment and lifestyle plans to their customers. The plans supported by VCP offer everything from preventive services, dental care and diagnostics to food and care. The integration of the VCP platform with Covetrus’ robust practice management and prescription management software enables tailored wellness plans that meet the unique needs of each family and support an improved veterinary practice and pet parenting experience.
“Modern pet owners take wellbeing seriously, and that means getting the right medicines, services and products at the right price and at the right time,” said Ben Wolin, President and CEO of Covetrus. “Covetrus is strategically positioned to help veterinarians deliver proactive and holistic healthcare through membership programs that seamlessly integrate with our leading practice and prescription management solutions. By adding VCP technology to our software portfolio, we’re making wellness for practices and pet parents, which helps veterinarians strengthen relationships with their customers, improve clinical quality, and extend affordable care. “
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Pet wellness has grown to an estimated $ 50 billion market in the United States and is currently experiencing rapid adoption. For veterinarians looking to stand out from the competition and promote better practice and patient health, technology-driven wellness plans offer exceptional experiences that build customer and patient loyalty. Practices that adopted the VCP platform saw sales growth of up to 10% in their first year, with sustained year-over-year growth and a significant increase in spend per pet over time.
“Covetrus fits in perfectly with VCP’s preparations for the next leg of our journey,” said Bob Richardson, co-founder and president of VCP, who will continue in his role. “Covetrus offers the opportunity to focus on our comprehensive wellness solution by integrating it with your high-performance practice management solutions. This integration will bring a new level of simplicity and convenience to clinics and enable more care, enabling convenient home delivery for pet owners looking for easier accessibility, better value for money and a better overall experience. We are delighted to be able to better offer the wellness business and the benefits it brings to countless pets, pet owners and veterinarians in the years to come. “
Financial terms of the transaction were not disclosed. The transaction is not expected to have a material impact on Covetrus’ previously announced financial guidance for 2021.
White and Williams LLP is serving as legal advisor to Covetrus and Lincoln International LLC is serving as financial advisor. Bryan Cave Leighton Paisner LLP is serving as legal advisor to VCP and Houlihan Lokey is serving as exclusive financial advisor.
Covetrus is a global animal health technology and services company committed to empowering veterinary practice partners to achieve better health and financial outcomes. We bring products, services and technologies together on a single platform that connects our customers with the solutions and insights they need to function optimally. Our passion for the welfare of animals and those who care for them drives us to advance the world of veterinary medicine. Covetrus is headquartered in Portland, Maine and has more than 5,500 employees serving over 100,000 customers around the world. Further information about Covetrus can be found at https://covetrus.com/.
VCP has become the leading wellness plan management solution in the veterinary industry, offering a comprehensive end-to-end platform that removes the confusion of creating, implementing and managing a wellness program. VCP’s innovative wellness technology and proprietary Business of Wellness process enable veterinary clinics to create plans tailored to their treatment protocols and specific customer needs. For practices, wellness programs ensure more compliance and loyalty and higher spending per pet, up to 10% sales growth in the first year. VCP is headquartered in Irvine, California. Further information can be found at https://vcp.vet/.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve risks and uncertainties, including statements about our plans, objectives, Expectations and intentions. Such statements are subject to numerous risks and uncertainties. Factors that could adversely affect our business and our prospects are set out in our public filings with the Securities and Exchange Commission. Our forward-looking statements are based on the current beliefs and expectations of our management team and, unless required by law, we assume no obligation to revise or update the forward-looking statements contained in this press release to reflect events or circumstances that occur after the date of this release occur, be it due to new information, future developments or for other reasons. Investors are cautioned not to place undue reliance on these forward-looking statements.
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