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Following the announcement of a $4.1 billion acquisition by Patient Square Capital, Patterson Companies (PDCO, Financials) saw its shares soar more than 30% in premarket trading on Wednesday. Given cash values of $31.35 per share, owners should enjoy a clear premium over the firm's current trading price.
Leading distributor of dentistry and animal health goods Patterson Companies reported a clear agreement to be bought by Patient Square Capital, a private equity company with a focus on healthcare. With the sale, the firm is valued at around $4.1 billion and pays cash to each shareholder $31.35 per share.
Subject to regulatory clearances and shareholder assent, the agreement is scheduled to finalize in the fourth quarter of Patterson's fiscal 2025, according a company release.
Ademi LLP, a legal company focused on shareholder rights, has taken notice of the purchase and declared an inquiry on whether Patterson's board behaved in the best interest of public shareholders and obtained a fair price for the deal.
Patterson posted its fiscal second-quarter results on December 5 before the acquisition announcement. With net revenues of $1.67 billiona meager 1.3% rise from the same time previous yearthe business said A cybersecurity hack at Change Healthcare, a third-party vendor, affected profits, hence the firm changed its projection of fiscal 2025 earnings.
This article first appeared on GuruFocus.