Cencora Sells Animal Health Division for $3.5B to Focus on Drug Distribution

Pharmaceutical distributor Cencora announced Wednesday it will sell its animal health subsidiary MWI Animal Health to private company Covetrus in a $3.5 billion transaction. The deal allows Cencora to concentrate on its primary drug distribution business while maintaining a minority stake in the combined animal health company.

Pharmaceutical distributor Cencora announced Wednesday it will sell its animal health subsidiary MWI Animal Health to private company Covetrus in a transaction valued at $3.5 billion, allowing the company to concentrate on its primary drug distribution operations.

The transaction structure will provide Cencora with $1.25 billion in cash when the deal closes, along with $800 million in preferred equity and $1.45 billion in common equity within the newly formed company. Despite the sale, Cencora will retain a 34.3% minority ownership position in the merged animal health business.

This divestiture represents part of Cencora’s broader strategic realignment as the company works to shed business units that don’t match its future objectives while strengthening its primary pharmaceutical distribution focus.

Company executives had previously indicated the animal health division didn’t fit well with Cencora’s long-range strategic goals, similar to other assets including legacy U.S. hub services and a pro forma equity investment in Brazil.

Covetrus CEO Ben Wolin stated the merger will expand the range of products and services available to veterinarians and animal health practitioners while enhancing logistical capabilities.

Both companies noted the transaction must receive regulatory approval and satisfy other standard closing requirements before completion.

Cencora maintained its fiscal 2026 financial projections, stating the company doesn’t expect the transaction to finalize before its fiscal year concludes in September 2026.