Fountain Report Excerpts Nov 26, 2024

Fountain Report Excerpts
  1. While Cherry Tree’s animal hospital index lost about 0.5% in Q3, the broader market was up over 5%. The CAHI now lags the market over its lifetime by 22%. Even though the industry was flat, median growth, margins and multiples were up. M&A and funding activity also continued their upward trends. M&A activity levels this quarter haven’t been seen in two years. Notable acquisitions include Dechra’s $520M acquisition of Invetx, Mars’ acquisition of Cerba Vet, Inspire Veterinary Partners’ acquisition of Vetsie.ai, and Boehringer Ingelheim’s acquisition of Saiba Animal Health.
  1. Investment funds managed by Morgan Stanley Capital Partners, the middle-market-focused private equity team at Morgan Stanley Investment Management, acquired FoodScience, a vertically integrated provider of pet and human nutritional supplements, including VetriScience and Pet Naturals brands, from Wind Point Partners.
  1. The majority of the nearly 794,000 broilers being depopulated in California are in Kings and Fresno County, but an operation of 29,100 birds was also confirmed with the virus a little north in San Joaquin County.

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