AustralianSuper is set to underwrite a $2bn-odd equity raising for the country’s largest pharmaceutical products wholesaler EBOS to buy the pet care business it partially owns, Greencross, according to sources.
The country’s largest superannuation fund is a 45 per cent owner of Greencross with the The Healthcare of Ontario Pension Plan, while private equity firm TPG Capital owns the remainder.
Trading of shares in EBOS, which is listed in Australia and New Zealand with a $6.7bn market value, have been suspended and last traded at $35.01 ahead of its plans to buy the private equity backed vet services and pet retailer, thought to be worth about $4bn.
However, DataRoom understands that the deal is done and should be announced soon.
Also taking up shares in the raising is the major shareholder of Ebos, Symbos Holdings, owned by The Zuellig Group, which currently owns about 18 per cent, say sources.
Working on the deal for EBOS is Macquarie Capital, UBS and Lazard.
EBOS has net debt of $766m and is running out of growth opportunities in Australia, which is believed to be the rationale for embarking on the acquisition.
It comes after it lost the highly lucrative Chemist Warehouse contract to Sigma from June 2024, as announced over five months ago.
It provides the company with $1.1bn annually – 17 per cent of its overall revenue.
DataRoom reported in September that TPG Capital was believed to be testing buyer interest for $3.5bn Petbarn owner Greencross.
Already, EBOS and Greencross jointly own the New Zealand pet retail business Animates.
Greencross has the largest vet services operation in Australia, with more than 160 clinics, including general practices, speciality and emergency centres, pathology labs and crematoria.
In 2021, it was understood that the vet services division generated a lot less than half the annual earnings before interest, tax, depreciation and amortisation, then said to be about $220m.
The retail side of Greencross has more than 230 stores operating under the names of Petbarn and City Farmers in Australia, and Animates in New Zealand.
In addition to selling pet food and accessories through its store network and online platform, Greencross offers a wide range of pet services including grooming, dog washing, obedience trading and pet adoption.
The pet care industry is fiercely sought after given its strong trend of earnings growth and makes sense for EBOS as it already distributes pet care products through its pharmaceutical wholesale operations.
EBOS sells pharmacy products wholesale to more than 7000 hospitals as the largest and most diversified Australasian marketer, wholesaler and distributor of healthcare, medical and pharmaceutical products and animal care brands.
TPG’s Greencross, advised by Jefferies, was earlier considering a float, but volatile markets places that option off the agenda.
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