Dental and animal health company Patterson Companies (PDCO) is going private in a $4.1 billion deal with healthcare investment firm Patient Square Capital. Patient Square Capital has agreed to acquire PDCO stock for $31.35 in cash per share. This has investors celebrating today as that’s a 35.65% premium over its previous closing price.
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Patterson Companies and Patient Square Capital expect the deal to close in the former’s Fiscal Q4 of 2025, which ends on April 27, 2025. Patterson Companies chose to go private via this deal after announcing it would explore strategic alternatives earlier this month.
What This Means for PDCO Stock
Going private means that shares of PDCO stock will no longer trade on a public exchange. Instead, investors will receive the $31.35 per share that Patient Square Capital has agreed to when the deal closes.
This news brings heavy trading as investors buy shares of PDCO stock ahead of the take-private deal closing. That has more than 5.16 million units changing hands as of this writing. For comparison, the stock’s daily average trading volume over the last three months is 873,990 shares.
PDCO stock is rallying 34.44% today, reversing its negative movement throughout 2024, with shares up 13.77% year-to-date. The stock is also up 22.14% over the last 12 months. Before this acquisition news, shares of PDCO were set to close out 2024 in the red.
Is PDCO Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus estimate for Patterson Companies is Hold based on two Buy ratings and seven Hold ratings over the last three months. With that comes an average price target of $25.67, a high of $29, and a low of $23. This represents a potential 17.35% downside for PDCO shares.
