Quad-C Exits Veterinary Care Platform

Quad-C Management has agreed to sell Compassion-First Pet Hospitals to JAB Holding Company, a privately-held German conglomerate controlled by the Reimann family, at an enterprise value of for $1.2 billion.

Compassion-First is a provider of specialty, emergency and general veterinary care through a network of 41 hospitals and treatment facilities across 13 states, primarily in urban and suburban areas. The company was founded in 2014 by CEO John Payne and is headquartered near New York in Tinton Falls, NJ (www.compassionfirstpets.com).

Compassion-First’s veterinary service providers who are currently investors in the company will maintain a significant equity stake going forward, and the company’s management team, including Mr. Payne, will also continue to be significant investors and will continue to lead the company.

Quad-C Management acquired Compassion-First (then Veterinary Specialists of North America) in September 2014 in partnership with Mr. Payne. “It has been a pleasure to work with John Payne and the Compassion-First team to create a differentiated platform in veterinary medicine,” said Tim Billings, a partner at Quad-C. “We started with a small group of hospitals in the Mid-Atlantic region five years ago and have assembled an amazing group of hospitals across the country. Quad-C is proud to have been partners with all of the exceptional veterinarians and employees who have joined the Compassion-First family and we wish the team continued success.”

Quad-C invests from $35 million to $125 million of equity in companies with enterprise values of $75 million to $400 million. Sectors of interest include business services, consumer, general industrial, healthcare, specialty distribution and transportation and logistics. In March 2017, Quad-C closed its latest fund, Quad-C Partners IX LP, at an oversubscribed $1.1 billion. Quad-C was founded in 1989 and is headquartered in Charlottesville, VA (www.quadcmanagement.com).

The buy of Compassion-First is JAB’s first investment in the veterinary sector. “We are pleased to invest behind John and the management team as Compassion-First continues to deliver industry-leading organic growth and execute on its long-term strategy,” said David Bell, a partner at JAB. “The dedication to being the best place for veterinarians to work, the absolute commitment to putting patients first and the continual focus on innovation to improve the lives of both pets and their families are values very much in line with the those at JAB, and we look forward to partnering with John and his team to further Compassion-First’s success.”

JAB is a private investment firm with two investment vehicles, JAB Holding and JAB Consumer Fund. The firm invests in premium brands in the consumer category and has controlling stakes in Keurig Dr Pepper, Panera Bread, Pret A Manger, Peet’s Coffee & Tea, Caribou Coffee, and Krispy Kreme Doughnuts, among others. JAB is headquartered in Luxembourg (www.jabholco.com).

Jefferies (www.jefferies.com) was the financial advisor to Compassion-First.

© 2019 Private Equity Professional | February 27, 2019

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