Patient Square Purchases Patterson Companies (~12x EBITDA)
- Will Hamilton
- Dec 13, 2024
- 2 min read
On December 11, 2024, Patterson Companies, Inc. announced its acquisition by Patient Square Capital, an investment firm dedicated to the healthcare industry. Patterson is a leading distributor of dental, animal health, and rehabilitation products and supplies, with a portfolio of subsidiaries that span a broad set of product lines including dental consumables and equipment, veterinary supplies, and physical rehabilitation technologies, and is supported by a nationwide distribution network and deep relationships with care providers. For Patient Square Capital, the acquisition of Patterson Companies expands its healthcare services and distribution footprint by adding a well-established, cash-generating platform with diversified end markets and recurring revenue characteristics.
Healthcare Distribution EBITDA Multiples
According to the press release, the purchase price was $31.35 per share, or a total of approximately $4.1b. Revenue and adjusted EBITDA from the fairness opinion. With estimated 2025 revenue and EBITDA of $6.7 billion, and adjusted EBITDA of $343 million, the implied multiples work out to 0.6x revenue and 12x EBITDA.
Distribution and Equipment Services M&A Deal Volume
The number of announced healthcare distribution and equipment services deals continued to decline in 2025 to an average of 13 per quarter, down from 20 per quarter in 2024, 25 per quarter in 2023 and a peak of 37 deals in Q1 2021. The declines are concentrated in the home medical equipment (HME/DME) segment, as announcement volumes have remained steadier in the biomedical / equipment services and distribution segments, although biomedical / equipment services also showed some weakness in 2024 and 2025.
Other Healthcare Distribution and Equipment Services Deals
Read Scope Research's take on other distribution and equipment services M&A transactions:
About Scope Research
The Scope Research Healthcare M&A Valuation Database currently has financial details related to 108 distribution and equipment services deals, segmented by type, including 78 deals with disclosed EBITDA multiples. The data can be purchased individually, while our affordable annual subscriptions provide access to all of our healthcare M&A databases and segments, updated continuously.
Don't hesitate to reach out to Will Hamilton at will@scoperesearch.co with questions about your specific situation.
