Pet care retailer Greencross has agreed to a buyout offer made by global alternative asset firm TPG.
To this end, Greencross has entered a scheme implementation agreement (SIA) with Vermont Aus, an entity owned by TPG Capital Asia and TPG Growth to purchase 100% of Greencross shares.
As part of the scheme, Greencross shareholders will receive ($3.99 per share.
The scheme consideration represents an implied equity value of $485.85m and an enterprise value of $698.18m, which includes a net debt of A$268.2m ($193.04) and minority interests of A$26.3m ($18.93m) as of 30 June 2018.
The board of Greencross unanimously recommended its shareholders to vote in favour of the scheme. However, it makes no recommendation in relation to the equity alternatives.
Greencross chairman Stuart James said: “In reaching our conclusion that the scheme is in the best interests of shareholders, the Board has considered a number of alternatives, including standalone value creation opportunities and alternative proposals from other potentially interested parties.
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“Upon assessing the alternatives before it, the board has unanimously concluded that the scheme is a compelling option which realises attractive value for our shareholders.”
According to the company’s ASX filing, the scheme is subject to limited conditions and is not subject to financing or due diligence.
TPG expects Vermont Aus to fund the cash component of the scheme consideration through equity committed by certain funds managed or advised by it and third-party financing.
The shareholders are likely to have the opportunity to vote on the scheme at a meeting to be held during the end of the first quarter of 2019. The scheme is expected to be implemented during the first half of next year.
Greencross currently operates 250 retail stores under Petbarn and City Farmers banners in Australia and Animates in New Zealand.
It offers pet food and accessories along with pet services such as grooming, dog washing, pet insurance, puppy training, dog walking, pet minding and pet adoption.