VCA Antech to Acquire Pet DRx

VCA Antech Inc. of Los Angeles, Calif., has signed a definitive merger agreement with Pet DRx Corp. for $41.25 million in cash.

Pet DRx operates 23 animal hospitals in California and has annual revenue of about $64 million. On completion of the merger, the combined companies will operate more than 520 animal hospitals in 40 states.

The acquisition will occur in two steps, according to VCA Antech. In the first step, VCA Antech will acquire a majority of the shares of the company pursuant to a stock purchase agreement entered into among VCA Antech, Pet DRx and certain selling stockholders, which is expected to close within 30 days.

In the second step, VCA Antech will acquire the remaining issued and outstanding shares of the company pursuant to the merger agreement. The second step is expected to occur at least 20 days after the company mails its shareholders an information statement describing the terms of the transaction. The mailing will occur after the information statement has been filed and cleared with the U.S. Securities and Exchange Commission, according to VCA Antech.