Animal Health International Inc. and privately held Lextron Inc. yesterday announced that they have entered into a definitive merger agreement under which Lextron will acquire all of the outstanding common shares of AHII.

The emerging company will operate under the umbrella of the Animal Health International Inc., with combined resources that launch the entity to a leading spot in North America’s leading animal health businesses.

Lextron will pay $4.25 per AHII share, or approximately $111 million, an approximate 11% premium to the closing price of AHII shares on March 11, 2011. In addition, Lextron will take over the repayment of AHII’s outstanding indebtedness, for a total purchase price of $251 million.

Approved by AHII’s board of directors, the transaction is still subject to AHII stockholder approval, as well as other customary closing conditions. The transaction is expected to close by June 30, 2011.

According to today’s press release, investment funds affiliated with Charlesbank Capital Partners, and Jim Robison, AHII’s chairman, president and CEO, who together own approximately 33% of AHII’s outstanding common stock, have agreed to vote in favor of the transaction.

“This merger provides an opportunity for us to collectively create the country’s premier animal health business,” John Adent, president and CEO for Lextron stated in the press release. “Building upon Lextron’s four-decade presence in this industry, we are confident about the combined pool of industry expertise and resources we’ll be able to offer our customers moving forward.”

For more information visit www.ahii.com

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