Blue River PetCare, a large veterinary practice and pet hospital group, has appointed Leerink Partners to explore a sale, according to two sources familiar with the situation.

Chicago-based Blue River, a portfolio company of Partners Group, generates around USD 100m in adjusted EBITDA, two of the sources and a third source familiar said. The company is expected to launch a process later this year, two of the sources said.

Blue River, established in 2009 by CEO and co-founder Dan Blumenthal, operates in 39 states, according to its website. Swiss-based investment firm Partners Group made an undisclosed investment into Blue River in 2019 to help it grow organically and through acquisitions, with founders retaining a “sizable equity stake,” according to a press release.

Blue River is likely to generate a low-to-mid teens EBITDA multiple, or up to USD 1.5bn, in the event of a sale, two of the sources said.

It is the second time in recent years that Partners Group has sought to sell Blue River. News website Axios in August 2022 reported that Blue River had retained William Blair to pursue a sale, though no deal was reached.

The move comes as other large operators in the petcare space are pursuing M&A. Leonard Green & Partners, for instance, in June acquired a minority stake in privately held MedVet Associates, held by Goldman Sachs Merchant Banking Division and SkyKnight Capital, according to a news release. Also, Lakefield Veterinary Group, a Toronto-based family-owned vet group with over 70 locations, said Peloton Capital made an undisclosed minority investment into the company on 15 July.

Partners Group declined to comment. Blue River and Leerink did not respond to requests for comment.