Covetrus Sued by Pension Funds Over $4 Billion Take-Private Sale

Oct. 14, 2022, 4:32 PM UTC

Three pension funds sued Covetrus Inc. in Delaware over concerns that its planned $4 billion take-private sale—which closed Thursday—may have violated the state’s anti-takeover statute and breached the company’s standstill agreement with a major financial backer.

The lawsuit, made public Thursday, seeks internal files from Covetrus to investigate allegations that Clayton, Dubilier & Rice LLC partnered with TPG Global LLC on the deal at least six weeks before the animal health business waived provisions directing CD&R to refrain from any kind of approach.

The private equity partnership may also have violated a law requiring investors with a 15% ...

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