CD&R’s $4 Billion Covetrus Deal Hit With Pension Fund Challenge

Two pension funds sued Clayton, Dubilier & Rice LLC in Delaware over its $4 billion take-private buyout of Covetrus Inc., saying the investment firm colluded with its contacts at the animal health company to drive down the sale price.

The heavily redacted lawsuit, made public Thursday, also targets CD&R’s two representatives on the Covetrus board and CEO Benjamin Wolin. The complaint says Wolin was driven by lucrative personal perks to offer the private equity firm an inside track, which it exploited to manipulate the sale process and acquire the company at an unfair price.

“Covetrus did not need to ...