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VCA Antech to Acquire Pet DRx

VCA Antech Inc. of Los Angeles, Calif., has signed a definitive merger agreement with Pet DRx Corp. for $41.25 million in cash.

Pet DRx operates 23 animal hospitals in California and has annual revenue of about $64 million. On completion of the merger, the combined companies will operate more than 520 animal hospitals in 40 states.

“I am very pleased with the combination of the two companies,” said Bob Antin, chairman and chief executive officer of VCA Antech. “Both companies have hospitals in the California market, with a presence in Los Angeles, the Bay Area, San Diego, Sacramento and Coachella Valley. The combination will allow the hospitals to share valuable medical and management capabilities with a continuing focus on delivering the highest quality of veterinary care.

“We are excited about the opportunities to explore and expand our teaching programs and the outreach that the combination of these hospitals provides. We look forward to combining the hospital management teams to build a more effective presence in the California market.”

Under the agreement, the $41.25 million in cash will be applied first to pay down about $28.5 million in debt. After the payment of debt and other adjustments, VCA Antech expects the purchase price to be in the range of $0.34 to $0.36 per common share.

The acquisition will occur in two steps, according to VCA Antech. In the first step, VCA Antech will acquire a majority of the shares of the company pursuant to a stock purchase agreement entered into among VCA Antech, Pet DRx and certain selling stockholders, which is expected to close within 30 days.

In the second step, VCA Antech will acquire the remaining issued and outstanding shares of the company pursuant to the merger agreement. The second step is expected to occur at least 20 days after the company mails its shareholders an information statement describing the terms of the transaction. The mailing will occur after the information statement has been filed and cleared with the U.S. Securities and Exchange Commission, according to VCA Antech.

The acquisition is subject to customary closing conditions. <HOME>

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VCA Antech to Acquire Pet DRx

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