Covetrus, a global leader in animal health technology and services, has completed the sale of its scil animal care business to Heska Corporation.
The transaction closed under an amended purchase agreement that reduced the total consideration paid to Covetrus from $125 million to $110 million. In conjunction with the price adjustment, an approximate $10 million escrow fund that was to be funded by Heska and used as collateral for a period of up to 18 months for any potential claims tied to the transaction was eliminated.
Covetrus plans to use the net proceeds received yesterday, after closing adjustments and paying transaction-related fees and taxes, to help reduce the company’s net debt position and for other general corporate purposes.
“The scil business is in great hands with a high-quality partner in Heska and we are appreciative of their commitment to the business and the scil team during these unprecedented times,” said Ben Wolin, Covetrus president and chief executive officer. “We remain focused as an organisation on the core drivers of our business and executing against our strategic priorities.”
Covetrus is based in Portland, Maine, with more than 5,500 employees, serving about 100,000 customers around the globe.