Summary
Cencora, Inc. (formerly AmerisourceBergen Corporation) announced on January 12, 2015, that it has entered into a definitive agreement to acquire MWI Veterinary Supply, Inc. through its wholly-owned subsidiary, Roscoe Acquisition Corp. The acquisition will be conducted via a cash tender offer for all outstanding MWI shares at a price of $190.00 per share, representing a significant premium. This move signals Cencora's strategic expansion into the animal health sector. The transaction is structured to proceed with a tender offer followed by a back-end merger without requiring a stockholder vote, subject to customary closing conditions including regulatory approval under the Hart-Scott-Rodino Act and the tender of a majority of MWI's outstanding shares. The deal is not subject to any financing condition, with Bank of America committed to providing a $2.15 billion senior unsecured bridge term loan facility. Cencora management anticipates that this acquisition will create substantial value and enhance its market position.
Key Highlights
- 1Cencora (formerly AmerisourceBergen) is acquiring MWI Veterinary Supply in a cash tender offer for $190.00 per share.
- 2The total transaction value is implied to be substantial, given the per-share price and the $2.15 billion committed financing.
- 3The acquisition is structured as a tender offer followed by a merger, allowing for a streamlined closing process without a shareholder vote.
- 4Key closing conditions include regulatory approval (Hart-Scott-Rodino) and the tender of a majority of MWI's outstanding shares.
- 5The transaction is not contingent on Cencora securing financing, as Bank of America has provided a commitment letter for a $2.15 billion bridge loan.
- 6MWI's stock options will vest upon the offer closing, and restricted stock awards will become fully vested.
- 7MWI is subject to customary 'no-shop' provisions but can consider superior unsolicited acquisition proposals under certain conditions, with a termination fee of $76 million payable by MWI in specific circumstances.