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Following its announcement that Patient Square Capital will be acquiring Patterson Companies (NASDAQ:PDCO) in a $4.1 billion deal to take the company private, Patterson Companies' shares extended their run Wednesday, rising 34%. Patterson investors would get $31.35 in cash per share under the arrangement, a 35.7% premium over Tuesday's closing price. Equity commitments from Patient Square Equity Partners and debt financing sponsored by Citi, UBS Investment Bank, and Wells Fargo Bank N.A. will finance the purchase.
Expected to close in Patterson's fiscal 2025 fourth quarter, the deal will result in it becoming a privately held company. Patterson will stop paying dividends as part of the merger conditions. Once the acquisition concludes, the company said it will keep its headquarters in St. Paul, Minnesota. The announcement has driven shares higher since the deal's valuation premium appeals to investors.
This article first appeared on GuruFocus.