Source: Covetrus news release
CONSHOHOCKEN, Pa. & PORTLAND, Maine — Cencora (NYSE: COR) and Covetrus, a global animal health technology and services company, today announced that they have entered into a definitive agreement under which Covetrus and MWI Animal Health (MWI) will merge, creating a combined company offering a comprehensive animal health platform.
“Our mission has always been to empower veterinary practices to work smarter and deliver better care,” said Ben Wolin, President and Chief Executive Officer of Covetrus. “By bringing MWI’s strong distribution capabilities and expertise to our business, we can offer more solutions to more customers, improve logistics, create savings and develop innovative new ways to support the animal health ecosystem, including veterinarians, producers, dealers, manufacturers, distributors and pet parents. This combination is about making animal healthcare more affordable and accessible, and we remain committed to driving innovation across the industry.”
“As the animal health sector has grown and developed, so too have the needs of MWI’s stakeholders. This transaction positions MWI for success with a partner strategically focused on and dedicated to animal health, while allowing Cencora to further invest in our key growth priorities,” said Bob Mauch, President and Chief Executive Officer of Cencora. “By joining with Covetrus, MWI will continue its longstanding 50-year legacy of providing exceptional service and efficiency to the animal health industry.”
“MWI and Covetrus share a common vision to support our customers, manufacturer partners and innovators to advance animal care. The combination of MWI’s supply chain expertise, innovation and trusted customer relationships in companion and production animal health with Covetrus’ tech-enabled solutions for veterinarians will equip us to more effectively serve all our stakeholders,” said Steve Shell, SVP and President, MWI Animal Health. “On behalf of MWI, I am excited for our teams to come together and advance our shared mission of improving outcomes for animals and the experiences of their caregivers.”
Combination Will Expand Access and Innovation Across the Animal Health Ecosystem
Advancing Affordability and Access Across Animal Health: The combined company will deliver timely and cost-effective solutions, ensuring veterinary practices and animal health professionals have access to a broader range of products and solutions for both companion and large animals, empowering veterinary professionals to better meet the needs of their patients.
Driving Operational Efficiencies to Support Practice Growth: The combination of supply chain strength with pharmacy and practice management solutions will enable improved operational efficiencies and deliver meaningful cost savings for veterinary professionals and pet owners.
Supporting Innovation Across the Animal Health Landscape: As animal health manufacturers continue to develop innovative products, the expanded platform will be well-equipped to support expanded end-user reach and adoption for product launches, improving access-to-care across emerging customer channels, and better addressing pet owner, veterinarian and producer needs.
Transaction Overview
The transaction values MWI at an enterprise value of $3.5 billion, which exceeds Cencora’s current carrying value (book value) of the business. Upon closing, Cencora will receive upfront cash proceeds of $1.25 billion, $800 million in preferred equity and $1.45 billion paid in common equity in the combined company, resulting in a non-controlling 34.3% common equity stake in the combined company.
The completion of the transaction is subject to the satisfaction of customary closing conditions, including receipt of required regulatory approvals.
Cencora’s reaffirmed fiscal 2026 financial guidance does not currently contemplate the transaction closing in its fiscal 2026 ending September 30, 2026.
About Covetrus
Covetrus is a global animal-health technology and services company supporting companion, equine, and large-animal veterinary markets. The company delivers an integrated portfolio of products, software, and services that enable veterinarians to run better, more connected, and more profitable practices. Headquartered in Portland, Maine, with over 5,000 employees, Covetrus serves more than 100,000 customers worldwide. Covetrus brings over 60 years of experience as a trusted partner advancing veterinary care and practice performance.
About Cencora
Cencora is a leading global pharmaceutical solutions organization centered on improving the lives of people and animals around the world. We partner with pharmaceutical innovators across the value chain to facilitate and optimize market access to therapies. Care providers depend on us for the secure, reliable delivery of pharmaceuticals, healthcare products, and solutions. Our 51,000+ worldwide team members contribute to positive health outcomes through the power of our purpose: We are united in our responsibility to create healthier futures. Cencora is ranked #10 on the Fortune 500 and #18 on the Global Fortune 500 with more than $300 billion in annual revenue. Learn more at investor.cencora.com
About MWI Animal Health
MWI Animal Health is a leading global provider of animal health products, services, and solutions that support the operations of veterinarians and producers. By combining local expertise with global reach, MWI Animal Health delivers innovative solutions that promote animal health and well-being. Learn more at www.mwiah.com.
