Ares Management has signed an agreement to acquire the parent company of National Veterinary Associates (NVA Holdings), the largest private owner of independent freestanding veterinary hospitals in the United States, from Summit Partners which first invested in the company in 2007. NVA’s senior management will retain a minority stake. The transaction is expected to close in the third quarter of 2014.
“We are excited to partner with the NVA management team as long-term investors in the company,” said Nav Rahemtulla, Partner in the Private Equity Group of Ares Management. “Over the last 18 years, NVA has cultivated an exceptional reputation for providing high quality and compassionate care across its network of veterinary hospitals.”
National Veterinary Associates is the largest private owner of freestanding veterinary hospitals in the United States with more than 240 locations in 39 states. NVA supports more than 4,000 veterinary professionals and 850 veterinarians who provide a range of medical and surgical services. The company is based in Agoura Hills, CA (www.nvaonline.com).
“This investment is consistent with our strategy of partnering with best-in-class management teams, and we look forward to supporting the next phase of the company’s growth,” said Bennett Rosenthal, Co-Founder and Co-Head of the Private Equity Group of Ares Management.
Ares Management has $77 billion in capital under management and invests in private equity, leveraged loans, high-yield bonds, distressed debt and private debt. The Ares Private Equity Group manages approximately $10 billion of assets and is currently actively investing its fourth private equity fund, ACOF IV, which has $4.7 billion of committed capital. The firm has approximately 700 employees and is headquartered in Los Angeles with offices in New York, London, Chicago, and Atlanta (www.aresmgmt.com).
During Summit’s ownership term from 2007 to 2014, NVA acquired more than 125 veterinary hospitals and nearly tripled NVA’s EBITDA. “Summit has played a vital role in growing NVA for the past seven years – and we thank them for a very successful partnership,” said Greg Hartmann, CEO of NVA.
Summit Partners provides private equity and venture capital for growth companies. Founded in 1984, Summit has raised more than $16 billion in capital and has provided equity, recapitalization, and management buyout financing to more than 395 companies across a range of industries. Summit Partners has offices in Boston, Palo Alto, London, and Mumbai (www.summitpartners.com).
Proskauer Rose acted as legal advisor to Ares Management. Kirkland & Ellis acted as legal advisor, Jefferies acted as lead financial advisor and William Blair & Company acted as co-financial advisor to National Veterinary Associates.
2014 PEPD • Private Equity’s Leading News Magazine • 7-18-14