Debevoise & Plimpton LLP is advising Morgan Stanley Capital Partners (MSCP) and Pathway Vet Alliance (Pathway) in the sale of a majority stake in Pathway to TSG Consumer Partners (TSG), the largest acquisition of a veterinary business by a private equity firm. MSCP and Pathway management rolled over a significant amount of equity as part of the transaction.

Debevoise previously advised MSCP in connection with its investment into Pathway in 2016. At the time, a number of affiliated veterinary practices with disparate ownership were combined within a single entity to form Pathway, while using MSCP’s investment proceeds to simultaneously acquire a number of additional veterinary clinics. In a little over three and a half years, MSCP helped Pathway grow from approximately 30 veterinary practices to where it stands today, with over 270 general practice and specialty / ER veterinary hospitals in 34 states throughout the U.S., plus an additional 86 veterinary clinics operated under the Thrive brand.

MSCP, part of Morgan Stanley Investment Management, is a leading middle-market private equity platform that has invested capital in a broad spectrum of industries for over three decades, with a focus on privately negotiated equity and equity-related investments primarily in North America. Pathway, founded in 2003 in Austin, TX, has grown from a single veterinary practice to over 270 locations across the U.S. Pathway looks for practices and doctors seeking opportunities to grow and provides personalized management support to help them focus on providing the best possible care to their patients. TSG, a private equity firm exclusively focused on the branded consumer and retail sectors, is an active investor in the food, beverage, restaurant, fitness, beauty, personal care, household, apparel and accessories and e-commerce sectors.

For more information, please see the press release.

The Debevoise team is led by M&A partners Uri Herzberg and Kevin Rinker and includes M&A associates Marisa Demko, James Harrington, Emily Huang, Shira Huberfeld, Victoria Jiminez, Ross Liemer and Molly Quinn, finance partner Scott Selinger and counsel Katrina Molnarova, tax partner Rafael Kariyev and associates Molly Klinghoffer and Samuel Krawiecz, benefits partner Franklin Mitchell and associate David Deutsch, antitrust counsel Kyra Bromley and intellectual property associate Jose Angel Lamarque.