PORTLAND, Maine – Cencora and Covetrus recently entered into a definitive agreement that will combine Covetrus and MWI Animal Health into one expanded animal health company, according to company officials.

The merger is expected to create a comprehensive platform designed to serve veterinarians, livestock producers, manufacturers, distributors, and pet owners more effectively, officials added.

Ben Wolin, Covetrus president and CEO, said in a Feb. 18 media statement that their mission has always been to empower veterinary practices to work smarter and deliver better care.

“By bringing MWI’s strong distribution capabilities and expertise to our business, we can offer more solutions to more customers, improve logistics, create savings and develop innovative new ways to support the animal health ecosystem, including veterinarians, producers, dealers, manufacturers, distributors and pet (owners),” he said.

“This combination is about making animal healthcare more affordable and accessible, and we remain committed to driving innovation across the industry,” he added.

Bob Mauch, president and CEO of Cencora in Conshohocken, Pa., said, “As the animal health sector has grown and developed, so too have the needs of MWI’s stakeholders. This transaction positions MWI for success with a partner strategically focused on and dedicated to animal health, while allowing Cencora to further invest in our key growth priorities.  

“By joining with Covetrus, MWI will continue its longstanding 50-year legacy of providing exceptional service and efficiency to the animal health industry,” he added.

Steve Shell, president of MWI Animal Health in Boise, Idaho, said, “MWI and Covetrus share a common vision to support our customers, manufacturer partners and innovators to advance animal care.

“The combination of MWI’s supply chain expertise, innovation and trusted customer relationships in companion and production animal health with Covetrus’ tech-enabled solutions for veterinarians will equip us to more effectively serve all our stakeholders,” he said.

Grant Dewell, Iowa State University associate professor of veterinary medicine and beef extension veterinarian, told Farm World MWI has been around for a long time as a supplier for veterinarians and livestock producers, and is widely used.

“I am sure the merger will result in a diversified company that provides comprehensive services for veterinarians and animals,” he said. “I do worry that they will be less responsive to the needs of rural practice and livestock production as it becomes a smaller portion of their business.”

Andrew P. Griffith, University of Tennessee professor of agricultural and resource economics, told Farm World, “I am sure there will be some efficiencies that are enhanced from this merger, and there may be some additional economies of scale.” 

“However, I would suspect they are overstating the benefits,” he added. “It may mean slightly lower costs to veterinarians and producers, but I doubt it will be much more.”