<article>Australia-based pet services business <a style="color: #000080;" href="http://www.greencrossvet.com.au" target="_blank">Greencross</a> received and rejected a buyout offer from private equity firm (PE) <a style="color: #000080;" href="http://www.dealstreetasia.com/tag/tpg-capital/" target="_blank">TPG Capital</a> in a deal valued at about A$720 million ($507 million).</article>

Australia-based pet services business <a style="color: #000080;" href="http://www.greencrossvet.com.au" target="_blank">Greencross</a> received and rejected a buyout offer from private equity firm (PE) <a style="color: #000080;" href="http://www.dealstreetasia.com/tag/tpg-capital/" target="_blank">TPG Capital</a> in a deal valued at about A$720 million ($507 million).
Established in 1994, Greencross is the largest Australasian integrated consumer-facing pet care company. Its assets include a veterinary practice network across 115 clinics and over 175 retail outlets (under the brand names &#8211; Petbarn and City Farmers in Australia; the Animates brand in New Zealand) . The business activities include sale of pet food, pet accessories and pet care services such as grooming and washing.
According to the Asian Venture Capital Journal (AVCJ), which <a style="color: #000080;" href="http://www.avcj.com/avcj/news/2443703/australias-greencross-rebuffs-tpg-buyout-offer" target="_blank">reported</a> this development, the bid of A$6.45 per share is 5.1 per cent lower than the last market close, prior to  Greencross making its <a style="font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 13px; color: #000080;" href="http://www.asx.com.au/asxpdf/20160127/pdf/434lfgbyyj7pfl.pdf" target="_blank">statement</a> in an ASX filing.
According to the Australian Financial Review, it was <a style="color: #000080;" href="http://www.afr.com/street-talk/greencross-rejects-740-million-takeover-bid-from-tpg-20160125-gmdwa8" target="_blank">reported</a> that Greencross was advised by Macquarie Capital, Allier Capital and Clayton Utz and opted not to disclose the approach to shareholders.
This bid by TPG Capitla came amidst expectations that Greencross is likely to auction itself, and when market volatility has reduced the valuation and share prices of numerous firms.
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According to Greencross, TPG&#8217;s proposal to acquire Greencross was highly conditional and undervalued their business, which achieved its current scale by merging its veterinary practices unit with <a style="color: #000080;" href="http://www.petbarn.com.au" target="_blank">Petbarn</a> in 2013.
Currently, Greencross is aiming to further consolidate the fragmented market posed by the veterinary services, pet food and pet accessories markets. The company claims to have an 8 per cent share of these markets and is targeting to entrench itself further as it deepens its footprint and builds further traction, with a target of 20 per cent market share.
Increasingly, demand for premium products and services grows as pet animals are now perceived as integral household participants. This is a reflection of a trend where household pets, specifically dogs, <a style="color: #000080;" href="https://www.psychologytoday.com/blog/canine-corner/201105/do-we-treat-dogs-the-same-way-children-in-our-modern-families" target="_blank">supplant and replace children as dependants</a>, in a trend reflected in the US and Canada.
According to Greencross, it estimates that the Australia and New Zealand (ANZ) market was worth A$8.7 billion in 2015. This is expected to reach a capitalisation of A$11 billion by 2020. Reporting revenue of A$644.5 million for FY2015, an increase of 45 per cent year-on-year, Greencross also reported that their EBITDA climbed by 60 per cent, to A$86.8 million. This led to net profits increasing from A$21.6 million to A$38.2 million.
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Australia-based pet services business Greencross received and rejected a buyout offer from TPG Capital in a deal valued at about $507m

Australia-based pet services co Greencross rejects TPG Capital's $507m buyout bid

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Australia-based pet services co Greencross rejects TPG Capital's $507m buyout bid

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