Heska Corporation (NASDAQ: HSKA) is focused on the manufacture, sale, and distribution of veterinary products and solutions. Shares of the veterinary products company are rallying 20% through afternoon trading on Monday, April 3, 2023. Over the past three months, Heska has seen average daily volume of 126,860 shares. However, volume of 1.21 million shares or dollar volume of around $142.39 million, has already exchanged hands through afternoon trading.
Shares of Heska are gaining after the company announced it has entered into an agreement to be acquired by Mars, Inc. for $120.00 per share. The offer represents a 38% premium compared to Heska’s 60-day volume weighted average price. The board of directors of both companies have unanimously voted in favor of the deal. However, the transaction still requires the approval from Heska shareholders and regulators. Overall, the acquisition is estimated to close sometime during the second half of 2023.
Mars, Inc. is a diversified, private company that is best known for its candy and food brands, such as M&Ms, Snickers, Dove and more. However, Mars also has a burgeoning pet care business, which includes everything from pet food brands like Pedigree and Royal Canin to a global network of hospitals including Banfield, VCA, and more. On a combined basis across all its business units, Mars generates nearly $45 billion in annual sales.
As expected, Heska would be placed under the Mars Petcare division upon closing of the transaction. The acquisition is seen as providing a boost to Mars’s science and diagnostics portion of its pet care business.
Kevin Wilson, Chief Executive Officer & President, Heska, noted: “Today’s announcement is a great testament to the quality of our Heska family – we are small, but our people and their creativity, execution, expertise, and value-creation have made us exceptional. We are thrilled to join Mars Petcare on its quest to build A BETTER WORLD FOR PETS™. Working together, Heska’s innovations will more quickly reach more veterinarians to help more pet families live better, healthier, longer lives. That’s been our mission for over a decade and today is an incredible milestone towards realizing it.”
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