Feb 18 (Reuters) – Drug distributor Cencora will merge its MWI Animal Health with privately held Covetrus in a deal valuing the unit at $3.5 billion, the companies said on Wednesday, creating a combined animal-health distribution and technology company.
Under the agreement, Cencora will receive $1.25 billion in cash at closing, $800 million of preferred equity and $1.45 billion in common equity in the combined company, while keeping a 34.3% non-controlling stake in the merged business.
The companies said the deal is subject to regulatory approvals and other customary closing conditions.
Cencora reaffirmed its fiscal 2026 outlook, noting that it does not anticipate the deal closing before the end of its financial year in September 2026.
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Vijay Kishore)
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