PRIVATE EQUITY
STRUCTURED CAPITAL

CASE STUDIES

Industry Vertical
Industrial Services
Headquarters
Hingham, MA

www.pssi.co
Exited: 2018

VetCor

  • Business

    VetCor is one of the largest veterinary services platforms in the nation managing over 270 veterinary hospitals across 28 states. Its hospitals provide a full range of general medical and surgical services for pets, as well as pharmacy needs and ancillary services such as boarding, grooming, and pet products. VetCor has distinguished itself by promoting the local identity of each hospital, offering a family friendly work environment, providing management, training and administrative support to its hospitals, and relying on the veterinarians of each hospital to manage their medical direction.

  • Situation

    This investment opportunity was developed on a proprietary basis. Harvest had constructed an investment thesis around veterinary services over several years due to the sector’s large, stable, fragmented market with superior consolidation opportunities, lack of reimbursement risk and attractive cash flow profile. Given our familiarity with the sector and asset, Harvest was able to conduct due diligence and present a compelling offer on an accelerated timeframe.

  • Harvest Partners Investment

    In April 2015, Harvest recapitalized VetCor with existing sponsor Cressey & Company (“Cressey”) and management. To fund the acquisition Harvest and Cressey arranged debt financing, which consisted of a unitranche term loan.

    In July 2018, Harvest recapitalized VetCor. To fund the recapitalization, Oak Hill Capital Partners (“Oak Hill”), Harvest, Cressey and management provided equity capital and arranged the financing, which included a first and second lien credit facility and preferred equity.

  • Investment Thesis

    • Large, fragmented and growing veterinary services market
    • Attractive business model with strong, stable cash flows
    • Scarce, scale platform with a proven acquisition and integration strategy
    • Committed and talented management team with a track record of success
  • Value Creation

    • Accelerated same store sales growth
    • Doubled M&A velocity
    • Bolstered infrastructure and personnel
  • Outcome

    • Completed recapitalization with Oak Hill and Cressey in July 2018