The FEDERAL TRADE COMMISSION (FTC), which seeks to protect consumers and promote competition, has recently taken a SECOND ACTION (within days of its PREVIOUS ORDER dated June 13, 2022) against JAB Consumer Partners to prevent the private equity firm from further consolidating control over specialty and emergency veterinary hospitals.
As a condition of JAB’s proposed $1.65 billion acquisition of the parent company of veterinary clinic owner Ethos (owns and operates specialty and emergency veterinary clinics in nine states), the FTC is ordering the firm to divest clinics in Richmond, Va., Denver, San Francisco, and the Washington, D.C area. The Commission also is imposing strong prior approval and prior notice requirements on both JAB and its divesture buyers for future acquisitions of specialty and emergency veterinary clinics.
According to the Federal Trade Commission’s Bureau of Competition which enforces the nation’s antitrust laws:
“For the second time in a month, the FTC is taking action to prevent private equity firm JAB from gobbling up competitors in regional markets that are already concentrated,” said Holly Vedova, Director of the Bureau of Competition. “Divestitures will help preserve current competition, and the prior notice and approval requirements will allow the FTC to keep a close watch on these markets moving forward.”
FTC Takes Second Action Against JAB Consumer Partners to Protect Pet Owners from Private Equity Firm’s Rollup of Veterinary Services Clinics (6.29.22)
- FTC requires JAB to divest veterinary hospitals across the country, imposes strong prior approval and notice on both JAB Consumer Partners and its divesture buyers.
PREVIOUS FTC ORDER: Federal Trade Commission Intervenes in Private Equity Firm’s Acquisition of Veterinary Hospitals, Citing Antitrust Concerns (6.18.22)
- Earlier this month the FTC ordered JAB to divest clinics in California and Texas as a condition of its proposed $1.1 billion acquisition of another competing clinic operator, SAGE Veterinary Partners, LLC.