Large Veterinary Consolidator Reportedly Launches Sale Process

Blue River PetCare (Blue River), a large corporate consolidator of veterinary practices in the United States, recently LAUNCHED its sale process according to ION Analytics. Founded in 2009 and headquartered in Chicago, Illinois, operates a nationwide network of approximately 194 veterinary practice locations according to its website.

The company is led by Dan Blumenthal, Chief Executive Officer and Co-Founder of Blue River PetCare.

Blue River, a portfolio company of Partners Group (a Swiss-based global private equity firm), collected bids last month — bids for the network of hospitals was about 15x-16x EBITDA range. However, the hospital group is targeting a valuation of 17 to 19x EBITDA, according to ION Analytics.

RELATED:

  • Blue River PetCare appoints Leerink Partners to explore sale (7.23.24)
    https://ionanalytics.com/insights/mergermarket/blue-river-petcare-appoints-leerink-partners-to-explore-sale/

    • Blue River, a portfolio company of Partners Group, generates around USD 100m in adjusted EBITDA — likely to generate a low-to-mid teens EBITDA multiple, or up to USD 1.5bn, in the event of a sale.
  • Caring for America’s pets and their vets (August 2023)
    https://www.partnersgroup.com/~/media/Files/P/Partnersgroup/Universal/perspectives-document/20230830-partners-group-case-study-blue-river.pdf

    • Since 2019, the network has grown from 90 (300 doctors in 23 states) to 182 hospitals in 35 states with more than 500 veterinarians.
    • Group revenues more than doubled, with average earnings per hospital up 12% in just under three years.
    • EBITDA margin expansion 2019-2022 +160bps (as of April 2023).
    • 24% compound annualized revenue growth.
  • Scoop: Partners preps Blue River for market (8.3.22)
    https://www.axios.com/pro/health-tech-deals/2022/08/03/scoop-partners-blue-river-veterinary

    • Partners Group is gearing up for a potential sale of Blue River Petcare, the Chicago-based network of veterinary hospitals, three sources tell Axios.
    • Sources say Blue River is generating around $75 million of EBITDA — in 2019, Blue River’s adjusted EBITDA was pegged at north of $30 million.
    • The 2019 deal concluded a BofA-led process that valued Blue River at around $440 million to $500 million.
  • Employee Reviews of Blue River PetCare:
    • Reading company reviews at popular job websites about Blue River PetCare can provide greater insight into the company’s leadership, culture, work conditions and its priorities — GLASSDOOR | INDEED.
  • Blue River PetCare Locations – PLATFORM™
    https://www.pets.care/blue-river-petcare-locations/

    • CARE for Pets™ has recently launched PLATFORM,™ a first-of-its-kind searchable online database tool that tracks acquisitions of veterinary consolidators for the pet care industry.