Patterson Companies (PDCO) stock skyrocketed 35.79% in pre-market trading Wednesday after the dental and animal health products distributor announced it has agreed to be acquired by Patient Square Capital in an all-cash deal valuing the company at approximately $4.1 billion.

Under the terms of the $4.1 billion agreement, Patterson shareholders will receive $31.35 in cash per share, representing a premium of around 49% over the company's 30-day volume-weighted average price ending December 4, 2024 - the last trading day before Patterson announced it was evaluating strategic alternatives including a potential sale or merger.

The acquisition comes after a comprehensive review by Patterson's board concluded that the deal with Patient Square Capital, a dedicated healthcare investment firm, would maximize value for shareholders. Patterson had been facing challenges in a difficult end market environment, leading the company to explore strategic options last week.

Subject to shareholder and regulatory approvals, the deal is expected to close in the fourth quarter of Patterson's fiscal 2025. Upon completion, Patterson will become a privately-held company and its shares will no longer trade on the Nasdaq Global Select Market.