CONSHOHOCKEN, PA & PORTLAND, ME — Cencora (NYSE: COR) and Covetrus announced they have entered into a definitive agreement under which Covetrus and MWI Animal Health will merge, creating a combined animal health technology and distribution company.
The transaction values MWI at an enterprise value of $3.5 billion, according to the companies.
Upon closing, Cencora will receive $1.25 billion in cash, $800 million in preferred equity and $1.45 billion in common equity in the combined company, resulting in a non-controlling 34.3% common equity stake.
The companies said the deal brings together MWI’s companion and production animal distribution operations with Covetrus’ technology and services platform for veterinary practices.
Ben Wolin, president and chief executive officer of Covetrus, said the combination will expand product and service offerings.
“By bringing MWI’s strong distribution capabilities and expertise to our business, we can offer more solutions to more customers and improve logistics,” Wolin said.
Bob Mauch, president and chief executive officer of Cencora, said the transaction positions MWI with a partner focused on animal health while allowing Cencora to invest in other priorities.
“By joining with Covetrus, MWI will continue its longstanding 50-year legacy of providing service and efficiency to the animal health industry,” Mauch said.
Steve Shell, senior vice president and president of MWI Animal Health, said the companies share a goal of supporting manufacturers, veterinarians and producers.
The companies said the combined platform is expected to support distribution, pharmacy and practice management capabilities across the animal health sector.
Completion of the transaction is subject to customary closing conditions, including regulatory approvals.
Cencora said its reaffirmed fiscal 2026 financial guidance does not assume the transaction will close before the end of its fiscal year on September 30, 2026.
Goldman Sachs is serving as lead financial advisor to Covetrus, with additional advisory support from Wells Fargo, Deutsche Bank, Rabobank, Mizuho, Natixis, Societe Generale, SMBC, TD Securities, ING and Standard Chartered. Guggenheim Securities is serving as lead financial advisor to Cencora, with Morgan Stanley also advising.
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