Patterson, a Dental Products Distributor, Agrees to $4.1B Sale to Healthcare Investor

Patterson Companies, a leading distributor of dental and veterinary products, has agreed to sell itself to healthcare investment firm Patient Square Capital for $4.1 billion. This acquisition, priced at $31.35 per share in cash, represents a 49% premium to Patterson’s recent stock price and follows the company’s decision to explore strategic alternatives due to a one-third drop in its fiscal Q2 profits. The deal includes a 40-day "go shop" period, allowing Patterson to solicit other proposals, though analysts consider the likelihood of higher bids to be low.

The Minnesota-based company, which reported $6.57 billion in sales last year with dental products contributing 38%, has faced challenges such as a cyberattack that impacted its dental revenue and reduced veterinary clinic traffic. Patient Square Capital, known for turning around underperforming assets like Syneos Health, is expected to use a mix of debt and equity financing for the purchase. The transaction, approved by Patterson’s board, is slated to close by April 2025, pending shareholder and regulatory approval.