EQT merges vetcare assets IVC and Evidensia

Mikkel Stern-Peltz
24 February 2017

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EQT will merge its two veterinary care companies, Sweden's Evidensia and UK-based Independent Vetcare (IVC), into a single group to be jointly owned by two of the GP's funds.

The merger is expected to be finalised in Q2 2017 and comes two months after EQT's secondary buyout of IVC from Summit Partners.

The GP's EQT VI and EQT VII funds will jointly own the resulting group post-merger. IVC chief executive David Hillier will become CEO of the new group, with Evidensia head Martin Tiveus departing.

The merger contributes to a trend in European private equity for substantial interest in the veterinary sector. A recent unquote" analysis exploring the topic can be read here.

Previous funding
EQT became the third owner of IVC in December 2016, when the GP acquired it from Summit Partners.

IVC's private equity history began when August Equity acquired Advanced Vetcare and Rowe Veterinary Group in October 2011, and merged the two companies to create IVC. The transaction gave the consolidated business an enterprise value of £35m.

Two months later, August provided acquisition finance to support the bolt-on of Berry House Group. Under the GP's tenure, the company's profits increased by a multiple of four with site numbers growing from 20 to 100.

Summit then acquired IVC from August Equity in July 2014 in a deal estimated to be worth £100m, according to unquote" data.

EQT's ownership of Evidensia began in September 2014, when the company was bought in an SBO from Swedish GP Valedo Partners.

Valedo had taken a majority stake in Evidensia through an early-stage investment in February 2012, for an undisclosed amount.

Company
Bath-headquartered IVC was formed in 2011 through the merger of Advanced Vetcare and Rowe – founded in 2007 and 1948 respectively. The business has a headcount of 2,700, including 800 veterinarians. In addition to providing veterinary care, it also operates an online pet pharmacy.

Strömsholm-based Valedo was formed as a consolidation of Swedish animal hospitals in 2012, with the history of its portfolio clinics reaching back as far as 1954. It currently operates 180 clinics and hospitals across the Nordic and central European regions, employing 1,200 veterinarians.

People
EQT – Per Franzén (partner).