Live Deals: Leonard Green Acquires Animal Hospital Company –

Los Angeles, Calif.-based Leonard Green & Partners LP this month agreed to invest $327 million in Veterinary Centers of America, a nationwide owner of animal hospitals.

Goldman Sachs & Co. will help the firm arrange a $325 million loan to finance the acquisition.

The loan financing consists of a $75 million six-year revolving credit, a $100 million six-year term loan and a $150 million eight-year term loan. Approximately $160 million of the company’s existing debt will be paid off through the transaction.

Partners at Leonard Green did not return calls for this article.

Veterinary Centers is based in Santa Monica, Calif., and owns 197 hospitals nationwide. The company had annual revenues of $320 million in 1999. The company’s share price has remained stagnant over the last four years.

Leonard Green is no stranger to turnaround plays as the firm in October invested $300 million in troubled drugstore chain Rite Aid Corp. (BUYOUTS December 20, 1999, p. 4). The drugstore chain was in the midst of an accounting scandal and the resignation of its former chief executive when Leonard Green acquired it.

Leonard Green invests in leveraged acquisitions, management buyouts and recpaitalizations.