TPG puts Greencross listing on hold

Greencross has the largest vet services operation in Australia, with more than 160 clinics. Picture: iStock

TPG Capital planned to test the market for a listing of pet care business Greencross this year but the deal is on hold for the time being.

It comes as Wesfarmers has been in talks about an acquisition of the $3.5bn business.

DataRoom understands that the discussions were live as of a few months ago.

But sources say Wesfarmers has been focused on integrating recently acquired pharmacy business API.

It is understood TPG has not appointed an entire team of banks for a float of Greencross, but UBS may have been tapped.

Jefferies is working with TPG as an adviser on Greencross.

Greencross counts AustralianSuper and Healthcare of Ontario Pension Plan as 45 per cent shareholders.

They bought in last year in a deal that valued the business at $3.5bn. Since then, Greencross has purchased Habitat Pet Supplies, a Melbourne-based pet store chain with five stores that it plans to merge with its Petbarn and Animates retail businesses.

Greencross was founded in 1994 by vet Glen Richards. After being listed, it was purchased by TPG Capital in 2019 in a $675m transaction.

It 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 is understood the vet services division generated much 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 under the names of Petbarn, City Farmers and Animates.

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.