Mohacsy's Safe Portfolio Member Forum

[Elroy Jetson]

In a very unusual diversification move, candy maker Mars is spending $7.7 billion to acquire the VCA chain of pet hospitals. - http://www.latimes.com/business/la-fi-vca-mars-20170109-story.html

Los Angeles-based VCA operates nearly 800 animal hospitals and 60 diagnostic laboratories in the United States and Canada.

The firm employs 23,000 people — including about 1,400 in the Los Angeles area — and had 2015 revenue of $2.1 billion.


The deal calls for Mars to pay $93 for each of VCA’s shares and to assume VCA’s $1.4 billion in debt. VCA’s stock — whose ticker symbol is WOOF — soared $19.84, or 28%, to $90.62 a share in Monday morning trading.

“VCA is a leader across pet healthcare and the opportunity we see together — for pets, pet owners, veterinarians and other pet care providers — is tremendous,” Mars Chief Executive Grant Reid said in a statement.

The deal was approved by both companies’ directors, but remains subject to approval by VCA’s stockholders. It is expected to be completed in this year’s third quarter.