UK: CVC Capital Partners acquires Inflexion stake in Medivet for more than £1bn

CVC Capital Partners VIII has agreed to acquire a majority interest in Medivet, a leading veterinary care provider in the UK, Germany and Spain, from PE firm Inflexion in a deal said to exceed £1bn (US$1.4bn).

Medivet is a provider of veterinary care, delivering a full spectrum of small animal health services including routine check-ups, 24/7 emergency care, lab and diagnostics and advanced surgery to companion pets across the UK. During Covid-19, the company ensured it was well positioned for the boom in pet ownership by pivoting to video consultations as well as contactless collection and medication delivery to guarantee pets continued receiving treatment.

Inflexion’s exit comes almost five years after it made its December 2016 investment in Medivet through its dedicated minority investment fund, Partnership Capital I. Since then, Medivet has delivered strong organic growth, made significant expansions at home and abroad, and doubled headcount to over 3,000.

From its UK foundations, the company has recently expanded its operations in Germany and Spain and it now has, in partnership with local founders, around 50 sites in Europe.

With CVC’s investment, UK presence and international reach, Medivet is poised to continue growing as a major provider of veterinary services in animal health and wellness across Europe.

Adam Scott, Senior Partner at Mansfield Advisors, one of CVC’s advisors on the transaction, expects Medivet to increase its presence in Continental Europe under the new ownership. “These major markets are starting to consolidate, following the UK and Scandinavia, so the timing of the deal looks sensible. Medivet also brings a brand, hub-and-spoke operating model and high clinical ambitions, so the strategy is a lot more than only buy-and-build.”

Expansion is also on the mind of Dierdre Burns, CEO of Medivet, as the company builds on foundation established over 34 years of service.

“The management team has built upon these foundations, transforming the professionalism of our functions and operation, and we are primed to continue our expansion – both in market presence and in the depth of our clinical care, service and expertise,” she said.

The transaction is expected to close in Q4 2021 subject to regulatory approvals. CVC were advised by Jefferies, Freshfields, PWC, LEK, Mansfield Advisors and Goldman Sachs. Medivet was advised by HSBC, Travers Smith, KPMG and EY.