BC Partners acquires VetPartners from August and Ares

[Editor's note: BC Partners is the majority owner of Acuris, the parent company of Unquote]

Financial details of the transaction remain undisclosed, though a recent report by Sky News stated the deal was likely to be valued at £700m. However, the publication did not state whether the figure constitutes the full enterprise value.

BC drew capital from BC European Capital X, which held a final close in January on its €7bn target after two years on the road.

Ares reinvested as part of the deal, having reportedly entered into VetPartners' shareholding structure just two months prior to the latest deal. The company's management team also invested.

During the vendors' holding period, VetPartners has undertaken an acquisitive growth strategy, most recently acquiring production animal veterinary group Origin in July 2018, which comprises the brands Biobest Laboratories, Garth Pig Vets, Poultry Health Services, Westpoint Farm Vets, and Kingshay Farming and Conservation. The group now comprises 87 practices, many of which have multiple sites.

VetPartners will continue to pursue an acquisitive growth strategy under the tenure of BC and Ares, though it will also look to expand internationally.

August was invested in the company via its third fund, which closed on £200m in 2013.

BC Partners declined to comment further on the transaction, while Unquote was awaiting a response from August at the time of publication.

Previous funding
August launched VetPartners in 2015 via the merger of three businesses based in York, Newcastle and Lincoln.

Ares originally invested in VetPartners in 2016, according to a statement. A recent report by Reuters states that the business was originally invested via a £90m debt facility.

Ares then made a £500m hybrid debt and equity investment in the group in June 2018, according to the Reuters report. The publication reported that the financing was split between unitranche and preference shares, with August Equity retaining a minority stake in the group and Ares taking a 40% stake.

Company
York-headquartered VetPartners operates 310 veterinary clinics across the UK, providing care for small, equine and farm animals. It generates a turnover of around £250m, according to a statement issued by the acquirer.

People
August Equity – David Lonsdale (partner).
BC Partners – Jean-Baptiste Wautier (managing partner).
Ares Management – Richard Oliver (managing director, European direct lending).
VetPartners – Jo Malone (CEO).

Advisers
Equity – Linklaters (legal); Dickson Minto (legal); PwC (financial due diligence, commercial due diligence, tax); Kirkland & Ellis (legal).
Vendors – Barclays (corporate finance); Hogan Lovells (legal); DLA Piper (legal); KPMG (corporate finance); Kirkland & Ellis (tax).

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• Topics
• Exits
• Buyouts
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• August Equity LLP
• Linklaters
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