VCA To Buy 80% Stake In Companion Animal Practices, North America For $344 Mln

(RTTNews) - Animal healthcare company VCA Inc. (WOOF), said it has signed a definitive agreement to acquire an 80 percent ownership interest in Companion Animal Practices, North America or CAPNA for $344 million. Las Vegas, Nevada-based CAPNA operates a network of 56 free standing animal hospitals.

The closing of the transaction is expected between April and July 2016. VCA noted that CAPNA's management team, under the leadership of Dennis Law, President, will continue to operate CAPNA's animal hospitals as an independent operation sharing and leveraging many of the systems and processes that VCA has in place.

VCA said it estimates CAPNA will have annual 2016 revenues of about $200 million and that it will be accretive to the company's adjusted earnings per share.

Assuming a closing during the second quarter of 2016, VCA estimates an additional $0.03 to $0.04 in 2016 adjusted earnings per share excluding amortization, transaction and integration costs.

Further, VCA expects the transaction to include an estimated $116 million from anticipated future tax benefits, which will positively impact VCA's cash flow over the next 15 years.