MWI Veterinary Supply Inc. (Nasdaq: MWIV) agreed to acquire Ivesco Holdings LLC, a distributor of animal health products, for $67.5 million.
MWI expects the annual revenues from the Springdale, Ark.-based target to be roughly $400 million during the first 12 months of ownership.
Founded in 1945, Ivesco provides services to veterinarians, food animal producers and dealers. The company, which serves over 6,000 active customers, consists of five business units: mixed animal practice veterinarians, swine integrators, dealers, poultry and cattle.
Ivesco tapped investment bank Piper Jaffray & Co. and Pepper Hamilton LLP to advise the sale process ,while Boise, Idaho-based MWI hired Dechert LLP.
The transaction is expected to close in MWI's first fiscal quarter of 2014, which ends Dec. 31, 2013.
MWI is not the only company that is on the hunt for M&A opportunities in the animal health sector.
Private equity firm the Riverside Co. recently made an investment in Simcro Ltd. Headquartered in Hamilton, New Zealand, Simcro manufactures animal health-delivery systems used for production systems.
For more coverage on the animal health sector, see guest article, "Outlook for Pet Industry M&A Strong."