Portland-based Covetrus gets $250 million investment

A Portland-based animal health technology and services company is getting a $250 million investment.

Covetrus said Thursday that it will get the investment from Clayton, Dubilier & Rice, a private investment firm that has held a significant stake in the company since it was founded last year in a merger of Portland-based Vets First Choice and a New York company. Covetrus had a difficult first year that resulted in its posting a $1 billion loss, while top two executives were demoted to lesser roles.

CD&R will make the investment by purchasing convertible preferred stock with a 7.5 percent dividend. The dividend is payable in cash or with additional stock in the company, at Covetrus’ option. If the payment is taken as stock, it will be at a price of $11.10 a share, which Covetrus said represents a premium of 40 percent over the company’s 30-day volume-weighted average price.

Covetrus said it will use the investment to repay some of the company’s short-term borrowings, provide additional cash and for general corporate purposes.

At the close of the markets on Thursday, Covetrus was trading at $11.89, up 30 cents for the day.

Covetrus works with veterinary practice partners to improve health outcomes for animals and financial performance for the practices. It has more than 5,500 employees and more than 100,000 customers around the world.

CD&R manages $30 billion in investments and has offices in New York and London.

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