Covetrus and MWI move toward a $3.5 billion merger

Covetrus and MWI Animal Health have signed a definitive agreement to merge, combining MWI’s distribution business with Covetrus’ software, pharmacy, and practice-services platform into a broader animal health company serving companion animal, equine, and production animal markets. The deal, announced February 18, 2026, values MWI at $3.5 billion. Under the terms, MWI parent Cencora will receive $1.25 billion in cash, $800 million in preferred equity, and $1.45 billion in common equity, leaving it with a 34.3% non-controlling stake in the combined company. The companies say the merger is designed to create a more comprehensive, tech-enabled platform spanning product distribution, supply chain support, and veterinary workflow tools. (investor.cencora.com)

Why it matters: For veterinary professionals, this is another sign that the distribution and practice-technology sides of animal health are converging. If the transaction closes, practices could see tighter integration between ordering, inventory, pharmacy, and software tools, but also a further concentration of influence among large vendors serving clinics, hospitals, and mixed-animal operations. The companies are framing the deal around affordability, access, and efficiency, while industry coverage has pointed to a meaningful shift in the veterinary distribution landscape. (investor.cencora.com)

What to watch: The merger still needs regulatory approvals and other customary closing conditions, and Cencora has said it does not expect the deal to close before September 30, 2026. (investor.cencora.com)