• Covetrus and MWI Animal Health will merge under a definitive agreement.
• The transaction values MWI at an enterprise value of $3.5 billion.
• Cencora will receive $1.25 billion in cash, $800 million in preferred equity, and retain a 34.3% non-controlling common equity stake.
• The combined company will integrate distribution, pharmacy, and practice management technology across companion and production animal markets.
• The deal is subject to customary regulatory approvals.
Covetrus and MWI Animal Health have entered into a definitive agreement to merge, creating a combined company designed to deliver a comprehensive animal health platform spanning companion animal distribution, production animal distribution, and technology-enabled solutions.
Advancing Access and Affordability
Company leadership said the merger is intended to make animal healthcare more accessible and affordable by combining MWI’s distribution expertise with Covetrus’ technology and services portfolio. The integrated organization will serve veterinarians, producers, dealers, manufacturers, distributors, and pet parents with a broader range of products and solutions.
Ben Wolin, President and Chief Executive Officer of Covetrus, stated that bringing together MWI’s strong distribution capabilities with Covetrus’ platform will improve logistics, create savings, and expand innovative support across the animal health ecosystem.
Driving Operational Efficiencies
The companies emphasized that integrating supply chain strength with pharmacy and practice management solutions is expected to generate operational efficiencies for veterinary practices. The combined platform aims to support practice growth while delivering cost savings for veterinary professionals and pet owners.
Steve Shell, SVP and President of MWI Animal Health, noted that both organizations share a vision of supporting customers and manufacturer partners to advance animal care, highlighting MWI’s supply chain expertise and trusted relationships across companion and production animal markets.
Supporting Innovation and Market Expansion
As animal health manufacturers continue to introduce new products, the expanded platform is expected to enhance end-user reach and adoption of product launches. The companies said the merger will improve access-to-care across emerging customer channels and better address the needs of veterinarians, producers, and pet owners.
Transaction Structure
The transaction values MWI at an enterprise value of $3.5 billion, exceeding Cencora’s current carrying value of the business. Upon closing, Cencora will receive $1.25 billion in upfront cash proceeds, $800 million in preferred equity, and $1.45 billion in common equity in the combined company. Cencora will retain a 34.3% non-controlling common equity stake.
The transaction is subject to customary closing conditions, including required regulatory approvals. Cencora reaffirmed its fiscal 2026 financial guidance and indicated that its guidance does not currently contemplate the transaction closing within fiscal year 2026.
Information sourced from the company’s press release.
