Scoop: VetCor's PP&V buy valued at $1.1B-plus

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Scoop VetCor pays $1 1B-plus for PP& V

, author of Illustration: Brendan Lynch/AxiosExit Content Preview VetCor's just-announced acquisition of People, Pets, & Vets values the general practice vet care chain just north of $1.1 billion, sources tell Axios. Why it matters: Despite some slow-moving processes (see below), ts, and rocky financing markets, PP&V's healthy trade demonstrates we're not quite in the dog days of vet care dealmaking. Driving the news: VetCor, the veterinary services giant backed by Harvest Partners and Cressey & Co, announced its acquisition of PP&V on Tuesday. Interestingly, Cressey was also the majority owner of PP&V — and will remain invested in the combination.The deal concludes a Harris Williams-run auction that also included pure play sponsors, . Jefferies worked with VetCor. By the numbers: The deal translates to approximately 19.5x PP&V's real EBITDA of about $55 million, sources say. Fully adjusted EBITDA was marketed at about $80 million, sources said previously. PP&V encompasses 150-plus animal hospitals throughout the western and southern U.S. Yes, and: PP&V's sale multiple is consistent with relevant sector trades. Deal multiples for general practice vet groups — ticking higher through the pandemic-fueled pet boon — have recently commanded upper teens to 20x multiples of EBITDA in some cases. Specialty vet groups have fetched as much as 25x EBITDA. Of note: Merrick Axel, a lead partner on both Cressey's VetCor and PP&V deals, joined Varsity Healthcare Partners as partner and head of a new Chicago office, after 16 years at his prior firm, per a Thursday news release. What we're watching: Whether PP&V's trade gives other buyers and sellers more confidence to pursue a transaction amid today's turbulent financing market.Namely, Partners Group this summer mandated William Blair for a potential sale of Blue River Petcare, the Chicago-based network of veterinary hospitals, Timing was not clear, but one source speculated then that a post-Labor Day launch at the earliest was likely. Yes, and: what happened to Encore Vet Group, CareVet and Southern Veterinary Partners? North Castle Partners for Encore earlier this year via Harris Williams, Axios wrote.Compass Group Equity Partners engaged Lincoln International to advise on a sale of CareVet but it's unclear if the business ever formally went to market.Shore Capital Partners hired Goldman Sachs and Jefferies to explore a sale of SVP, Mergermarket reported earlier this summer. Meanwhile, VCs are increasingly looking to take a slice of the large and growing market, which private equity has historically dominated. In the last two weeks alone: PillPack alum Gavin Cotter raised $20 million in Series A funding for his latest venture, an online pet pharmacy called Koala Health, Petfolk, a vet startup boasting simplified access to health records and care teams, in August funding. The parties declined to comment.

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