CPE News (3.7.2022) – AmeriVet Veterinary Partners has closed a US $1.6 billion recapitalization in which funds managed by AEA Investors LP and a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) acquired AmeriVet from majority owner, Toronto based Imperial Capital Limited.
With 2,300 employees nationwide, San Antonio, Texas based AmeriVet is a leading consolidator of veterinary practices, partnering with experienced, established veterinarians looking to adapt and grow their practices and provides best-in-class operational resources to support their success. AmeriVet currently operates 139 practices in 32 states.
AmeriVet was launched by Imperial Capital in 2017 and OPTrust made a “substantial” minority investment in AmeriVet in 2019.
AmeriVet’s recapitalization was a resounding success for both investors and joint venture partners. Investors in AmeriVet, including the majority investor, Imperial Capital, earned a 6.6 times multiple of capital on their investment. As part of the recapitalization, AmeriVet’s DVM partners were able to participate at the Company’s platform multiple and monetize their retained joint venture ownership at a premium valuation. The majority of these partners elected to reinvest a significant portion of their proceeds into the Company, demonstrating their belief in and commitment to the continued success of AmeriVet. Going forward, AmeriVet will continue to offer the joint venture model to incoming partners who are interested in experiencing similar growth and success by remaining invested in their practice.
photo credit: AmeriVet Veterinary Partners
News Release
AmeriVet Veterinary Partners Acquired by AEA Investors LP and ADIA From Imperial Capital
Transaction Leaves AmeriVet’s Joint Venture Partnership Model Well-Positioned for Future Growth
March 07, 2022 10:30 AM Eastern Standard Time
SAN ANTONIO–(BUSINESS WIRE)–AmeriVet Veterinary Partners (“AmeriVet” or the “Company”), a leading consolidator of veterinary practices, announced today the closing of a $1.6 billion recapitalization in which funds managed by AEA Investors LP (“AEA”) and a wholly owned subsidiary of the Abu Dhabi Investment Authority (“ADIA”) acquired AmeriVet from Imperial Capital Group (“Imperial Capital”), of Toronto, Canada.
Headquartered in San Antonio, TX, AmeriVet partners with experienced, established veterinarians looking to adapt and grow their practices and provides best-in-class operational resources to support their success. Its joint venture partnership model has proven popular amongst veterinarians. AmeriVet has experienced rapid growth since acquiring its first practice in 2017 and currently operates 139 practices in 32 states. It also employs over 2,300 people nationwide.
“I want to thank Imperial Capital for being outstanding partners who helped us to realize the success our joint venture partnership model could enjoy in the veterinary industry,” said Thomas Thill, CEO of AmeriVet. “Our team is very excited about the opportunities that lie ahead for our partnership with AEA.”
AEA was established in 1968 by the world’s leading industrial families to create an opportunity for global business leaders to invest in the next generation of successful enterprises. Set apart by its depth of experience, unique history, trusted global network, and collaborative team culture, AEA is a leading global private investment firm with more than $14 billion of assets under management.
Intent on preserving its own company culture, AEA’s culture was especially appealing to AmeriVet as it considered recapitalization. “It was clear from the beginning that AEA was an investment partner that would be a good fit for AmeriVet’s business model and culture,” said Thill. “While there continues to be significant private equity interest in the veterinary industry, AEA set themselves apart by truly understanding and valuing our partnership model. It was clear very early on, that AEA would be the ideal partner in this next chapter of growth at AmeriVet.”
“As one of Imperial’s first portfolio companies launched using our proprietary Back, Buy and Build model, we are very proud of the success that it has achieved,” said Justin MacCormack, Managing Partner of Imperial Capital. “AmeriVet is led by an exceptional executive team that has built a truly unique and remarkable company. We are very happy that all their hard work has resulted in such an extraordinary outcome for investors and the DVM (Doctor of Veterinary Medicine) Partners, who put their trust in AmeriVet and Imperial,” added Chad Royer, Principal at Imperial Capital.
AmeriVet’s recapitalization was a resounding success for both investors and joint venture partners. Investors in AmeriVet, including the majority investor, Imperial Capital, earned a 6.6 times multiple of capital on their investment. As part of the recapitalization, AmeriVet’s DVM partners were able to participate at the Company’s platform multiple and monetize their retained joint venture ownership at a premium valuation. The majority of these partners elected to reinvest a significant portion of their proceeds into the Company, demonstrating their belief in and commitment to the continued success of AmeriVet. Going forward, AmeriVet will continue to offer the joint venture model to incoming partners who are interested in experiencing similar growth and success by remaining invested in their practice.
AmeriVet and Imperial Capital were advised by Jefferies Group, LLC on the transaction. AEA and ADIA were advised by William Blair & Company on the transaction.
About AmeriVet Veterinary Partners
For veterinarians looking to adapt and grow their practices, AmeriVet provides best-in-class resources and operational support – reducing their day-to-day burden, so they can focus on what matters most – because we truly care! A one-size-fits-all approach is not in our DNA; we want our partners to keep what makes them unique and embrace what makes them better. Unlike other consolidators, we are the option for vets who want to remain invested in their practices, both emotionally and financially. Our goal is to preserve the legacy of hard-working veterinarians who have spent their lives building their practices and caring for their patients.
About AEA
AEA Investors LP was founded in 1968 by the Rockefeller, Mellon and Harriman family interests and S.G. Warburg & Co. as a private investment vehicle for a select group of industrial family offices with substantial assets. AEA has an extraordinary global network built over many years which includes leading industrial families, business executives and leaders; many of whom invest with AEA as active individual investors and/or join its portfolio company boards or act in other advisory roles. Today, AEA’s approximately 100 investment professionals operate globally with offices in New York, Stamford, San Francisco, London, Munich and Shanghai. The firm manages funds that have over $14 billion of invested and committed capital including the leveraged buyouts of middle market companies and small business companies, growth capital and mezzanine and senior debt investments.
About ADIA
Established in 1976, the Abu Dhabi Investment Authority is a globally-diversified investment institution that prudently invests funds on behalf of the Government of Abu Dhabi through a strategy focused on long-term value creation. For more information: https://www.adia.ae
About Imperial Capital
Toronto-based, Imperial Capital is a leading lower middle market private equity firm focused on North American opportunities to build or acquire growth-oriented platform investments in targeted industry niches within healthcare, business and consumer services industries. Drawing from its eighth fund, Imperial Capital combines its deep industry focus, active portfolio management and strong partnerships with experienced industry executives to offer a differentiated approach to investing.
Contacts
Sara Hicks, (713) 705-3477
shicks@amerivet.com