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Europe’s biggest vet group IVC Evidensia is exploring a UK flotation, in what would be one of London’s largest in recent years following a listings drought.
The company, which is backed by private equity groups EQT and Silver Lake as well as consumer goods group Nestlé, was last valued at €12.3bn in 2021 and has grown by buying vet clinics and rolling them into one large group.
The sector has been transformed by a rush of consolidation, driven partly by higher spending on pets.
IVC is exploring several options, including a listing on the London Stock Exchange or a flotation on another venue as soon as next year, according to people familiar with the matter.
The people added that deliberations were at an early stage, and no final decision had been made.
A UK flotation would be a boost for the London Stock Exchange, which suffered its worst year for new listings in 2024 since the global financial crisis. It could also be one of the first in a wave of flotations of large private equity-backed companies in Europe after a period in which buyout firms have struggled to offload companies at attractive valuations.
Interest rate rises since 2022 have damped portfolio company valuations, leaving a yawning gap between the prices buyout firms were seeking for them and what potential buyers were willing to pay.
IVC was formed in 2017 from a merger between two EQT-backed vet service providers. The Bristol-based company examined a possible London listing in 2020, but instead stayed private and agreed a €3.5bn investment deal with Silver Lake and Nestlé in 2021.
Since that deal, IVC has entered several new markets, giving it around 2,500 clinics and hospitals in 20 countries. The group brought in former WHSmith chief executive Kate Swann as chair in 2019.
An IPO would also provide a path for IVC’s backers — including its biggest shareholder EQT — to begin selling down their investment in the company, as fund managers face pressure to return cash to their backers.
IVC is considering a London listing during a crunch year for the UK stock market. On Friday, broker Peel Hunt said IPO activity was “expected to ramp up” in the second quarter, adding the three-month period would be the “first real test” of the market in 2025.
Companies including payments group Ebury and Greece-based Metlen Energy & Metals are among those preparing listings this year.
IVC is one of the largest private equity-backed vet groups globally. Its potential IPO comes as buyout funds have seized on higher demand for vet services driven by a rise in pet ownership over the past decade, particularly during the pandemic.
High prices for services have triggered regulatory concerns, with the UK competition watchdog launching a probe into the vet market last year.
Three of EQT’s roughly 30 exit events last year involved transferring holdings between EQT funds — although all three such transactions also brought in other investors.
In October, EQT announced it would sell part of global schools operator Nord Anglia, valued at $14.5bn, to new investors while transferring its own controlling stake in the business to a newer EQT fund. The firm also sold minority stakes in some of its other businesses last year.
IVC, EQT, Silver Lake and Nestlé declined to comment.
