Animal healthcare provider VCA Inc (NASDAQ:WOOF) saw its shares surge in early trading Monday, after announcing it would be acquired by privately-held candy giant Mars Inc.
Los Angeles-based WOOF has agreed to a buyout price of $9.1 billion, or $93 per share. That asking price represents 31% premium over the stock’s Friday closing price of $70.77.
The company commented via press release:
“Joining the Mars family of brands provides significant value to our stockholders while also preserving the Company’s values and a culture focused on investing in our people and facilities to promote excellence in pet care and long-term growth,” said VCA Chief Executive Officer Bob Antin. “Mars has a long-standing commitment to pet health, wellness and nutrition. We will work together every day to continue to provide the quality care and excellent service VCA is known for to our clients and their pet families.”
The companies noted they expect the transaction, which is subject to regulatory and VCA shareholder approval, to close in the third quarter of 2017. WOOF will remain headquartered in Los Angeles following the buyout, and “will remain focused on its business model and strategic objectives.”
VCA Inc shares rose $20.23 (+28.59%) in premarket trading Monday. Year-to-date, WOOF has gained 32.48%, versus a 1.52% rise in the benchmark S&P 500 index during the same period.