The FEDERAL TRADE COMMISSION, which seeks to protect consumers and promote competition, has ordered JAB Consumer Partners, to divest veterinary clinics in California and Texas as a condition of its proposed $1.1 billion acquisition of competing clinic operator SAGE Veterinary Partners, LLC.
JAB Consumer Partners must also obtain prior approval and provide prior notice for certain future veterinary practice acquisitions.
According to the Federal Trade Commission’s Bureau of Competition which enforces the nation’s antitrust laws:
“Private equity firms increasingly engage in roll up strategies that allow them to accrue market power off the Commission’s radar,” said Holly Vedova, Director of the Bureau of Competition. “The prior notice and approval provisions will ensure the Commission has full visibility into future consolidation and the ability to address it.”
The consent agreement settling the FTC’s complaint against JAB and its subsidiaries requires them to:
- JAB must sell six clinics to divestiture buyer United Veterinary Care, LLC, no later than 10 days after its acquisition of Sage is consummated. The divested clinics include three SAGE facilities in Austin, Texas, and three clinics operated by a subsidiary of JAB located in San Mateo, Berkeley, and Fairfield, California.
SEEK PRIOR APPROVAL:
- Seek prior approval for an acquisition of a specialty or emergency veterinary clinic located within 25 miles of a JAB-owned veterinary specialty or emergency clinic, for the states of California and Texas.
PROVIDE COMMISSION WITH PRIOR NOTICE OF ACQUISITION:
- Provide the Commission with prior notice for an acquisition of a specialty or emergency veterinary clinic located within 25 miles of a JAB-owned veterinary specialty or emergency clinic, for the entire United States.
FTC Acts to Protect Pet Owners from Private Equity Firm’s Anticompetitive Acquisition of Veterinary Services Clinics (6.13.22)
RECENT JAB NEWS:
- JAB to Acquire Figo, Expands Pet Insurance Platform (11.1.21)
- Leading Animal Hospital Group NVA Acquires Ethos Veterinary Health (9.9.21)