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Clock is ticking for future of Maine’s largest public company

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Clock is ticking for future of Maine’s largest public company


Benjamin Shaw rings the opening bell of the Nasdaq inventory change in February 2019 as shares of animal well being merchandise firm Covetrus go public. The corporate could quickly be taken personal in a $4 billion deal pending stockholder approval. Libby Greene photograph

Maine is dwelling to 10 publicly traded corporations, however the latest – and the most important, by income – is poised to go away these ranks.

In precisely two weeks, stockholders of Covetrus Inc., a Portland-based animal well being merchandise and expertise firm, could approve the corporate’s sale to a pair of personal fairness companies from out of state.

Plans to promote the corporate have been introduced in Might however require approval at an Oct. 11 stockholders’ assembly to maneuver ahead. Clayton, Dubilier & Rice, primarily based in New York Metropolis, and TPG Capital of Fort Price, Texas, would personal Covetrus after paying stockholders $21 a share, placing the worth of the deal at about $4 billion.

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Shopping for an organization and taking it personal is just a little uncommon – it’s way more frequent for a privately fashioned enterprise to resolve to promote inventory to the general public.

An preliminary public providing can provide a enterprise a technique to elevate cash for development and permits the enterprise founders to money in on their first few years of operation. In distinction, going personal provides the leaders and new homeowners of a public firm extra flexibility, releasing them from some regulatory necessities and shielding executives from the stress of out of doors traders.

In a Might submitting with the Securities and Change Fee, Covetrus and the 2 personal fairness companies indicated they plan to maintain the corporate’s headquarters in Portland, however didn’t say how the sale may have an effect on staff. Covetrus has about 5,500 employees around the globe, together with 1,600 in North America and about 300 in Maine.

Covetrus, at the moment traded on Nasdaq underneath the image CVET, reported income of $4.58 billion final yr whereas posting a internet lack of $54 million.

The 2 personal fairness companies already personal a few quarter of the corporate’s inventory and the value of $21 per share represented a 39 p.c premium on the share value earlier than the acquisition was introduced this spring. Seven years in the past, CD&R invested roughly $55 million in a Covetrus predecessor firm, Vets First Selection, and that funding was transferred to Covetrus when it was fashioned.

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YOUNG COMPANY, DEEP ROOTS

Covetrus launched in February 2019 via a merger of Portland-based Vets First Selection and the previous animal well being division of Henry Schein Inc. (Nasdaq: HSIC), of Melville, New York, a medical and dental merchandise provider.

Vets First Selection, which offered expertise and providers for veterinarians, was began in 2010 by David Shaw and his son, Benjamin Shaw. David Shaw based Westbrook-based IDEXX Laboratories Inc., which focuses totally on animal-health diagnostic exams, in 1983.

At this time, IDEXX (Nasdaq: IDXX) is Maine’s second-largest public firm and competes with Covetrus in some areas of enterprise. Whereas the youthful firm’s income surpassed the $3.2 billion IDEXX introduced in final yr, IDEXX turned a $932 million revenue in 2021. IDEXX additionally has a far bigger market capitalization, or worth of excellent shares – $31 billion, in comparison with $3 billion for Covetrus.

Covetrus had a rocky begin. Preliminary earnings dissatisfied many traders and the corporate took a virtually $1 billion hit on “goodwill,” an intangible asset, within the first yr. A gaggle of shareholders additionally sued the brand new firm, saying they have been misled about its pre-IPO funds by high executives.

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CEO Benjamin Shaw resigned from Covetrus, and different senior executives, together with the chief monetary officer, additionally left. David Shaw stepped again to a much less energetic position on the corporate’s board. Finally an outsider, New York well being expertise entrepreneur Benjamin Wolin, grew to become CEO, and he holds that submit at the moment.

The corporate’s monetary efficiency has typically improved and the inventory value elevated underneath Wolin, who has stated the sale of Covetrus is “an essential milestone for our firm, shareholders, staff, clients and companions.”

He stated the sale would permit the corporate to proceed to assist veterinarians around the globe and that the brand new homeowners share that dedication to selling animal well being.

Wolin, nonetheless, may quickly be out of a job, though the brand new homeowners have indicated they plan to maintain the administration group in place, at the least initially.

It’s not but clear who may in the end lead Covetrus if it’s efficiently bought by the personal fairness companies. The deal would give Wolin a “golden parachute” upon termination price $17.8 million in pay, inventory and advantages. Different high executives would have severance packages starting from $3.2 million to $6.6 million.

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Maine

Increasing tobacco tax, AI protections among 2025 Maine health priorities

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Health experts and advocates are prioritizing a wide range of issues in the upcoming legislative session, spanning from the tobacco tax and artificial intelligence protections to measures that address children’s behavioral health, medical cannabis and workforce shortages.

Matt Wellington, associate director of the Maine Public Health Association, said his organization will push to increase the tobacco tax, which he said has not been increased in 20 years, in order to fund efforts to reduce rates of cancer.

Maine has a higher cancer incidence rate than the national average, yet one of the lowest tobacco taxes in the region.

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“One in three Mainers will face a cancer diagnosis in their lifetime,” Wellington said. “We’re putting a big emphasis on educating lawmakers about all of the tools at our disposal to prevent cancer and to reduce the incidence of cancer in our state.”

MPHA also supports efforts to update landlord-tenant regulations to create safer housing that can handle extreme weather events and high heat days by requiring air conditioning and making sure water damage is covered to prevent mold.

Wellington also emphasized expanding the breadth of issues local boards of health are allowed to weigh in on beyond the current scope of nuisance issues such as rodents, and establishing a testing, tracking and tracing requirement for the medical cannabis program.

Dr. Henk Goorhuis, co-chair of the Maine Medical Association legislative committee, said he is concerned about the use of artificial intelligence in denial of prior authorizations by health insurance companies and said there are some steps the state could take.

Both Goorhuis and Dr. Scott Hanson, MMA president, emphasized stronger gun safety protections.

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“The Maine Medical Association, and the Maine Gun Safety Coalition and the American Academy of Pediatricians … we’re all not convinced that Maine’s system is as good as it can be,” Hanson said.

Goorhuis added that while he thinks Maine has made progress on reproductive autonomy, it will be important to watch what could happen at the federal level and whether there will be repercussions here in Maine.

Jess Maurer, executive director of the Maine Council on Aging, and Arthur Phillips, the economic policy analyst with the Maine Center for Economic Policy, both said they are working on an omnibus bill to grow the essential care and support workforce and close gaps in care.

Maurer said this bill will include a pay raise for Mainers caring for older adults and people with intellectual and physical disabilities; an effort to study gaps in care; the use of technology to monitor how people are getting care; and the creation of a universal worker credential.

Phillips said he hopes lawmakers will pursue reimbursement for wages at 140 percent of minimum wage. A report he published this summer estimated that the state needs an additional 2,300 full-time care workers, and called for the Medicaid reimbursement rate for direct care to be increased.

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Maurer said Area Agencies on Aging are “overburdened” with demand for services and at least three have waitlists for Meals on Wheels. She is pushing for a bill that would increase funding for these agencies and the services they provide.

John Brautigam, with Legal Services for Maine Elders, said his organization is focused on making sure the Medicare Savings Program expansion is implemented as intended.

He’s following consumer protection initiatives, including those relating to medical debt collection, and supports the proposed regulations for assisted housing programs, which will go to lawmakers this session.

Brautigam said he’s also advocating for legislation that will protect older Mainers’ housing, adequate funding for civil legal service providers and possible steps to restructure the probate court system to bring it in line with the state’s other courts.

Jeffrey Austin, vice president of government affairs for the Maine Hospital Association, said he’s focused on protecting the federal 340B program, which permits eligible providers, such as nonprofit hospitals and federally qualified health centers, to purchase certain drugs at a discount.

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Austin said this program is crucial for serving certain populations, including the uninsured, but the pharmaceutical industry has been trying to “erode” the program. Maine hospitals lost roughly $75 million last year due to challenges to the program, he said.

Katie Fullam Harris,  chief government affairs officer for MaineHealth, also highlighted protecting 340B. She said that although it’s a federal program, there are some steps Maine could take to protect it at a local level, as other states have done.

Both Austin and Harris said there is more work to be done on providing behavioral health services for children so they aren’t stuck in hospital emergency rooms or psychiatric units. Harris said there will potentially be multiple bills that aim to increase in-home support systems and create more residential capacity. 

Austin said there’s a second aspect of Mainers getting stuck in hospitals: older adults with nowhere to be discharged. Improving the long-term care eligibility process will make this more effective. For example, there’s currently a mileage limit on how far away someone can be placed in long-term care, but that’s no longer realistic due to nursing home closures, he said.

This story was originally published by The Maine Monitor, a nonprofit civic news organization. To get regular coverage from the Monitor, sign up for a free Monitor newsletter here.

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Maine

Watch these otters playing in the Maine woods

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Watch these otters playing in the Maine woods


River otters are members of the weasel family, and are equally comfortable on land or in the water.

They probably are the most fun mammal Maine has, just because they like to play. But their play antics have a more serious purpose too. They teach their young survival skills, and hone their own, that way.

You will see them slide down riverbanks and muddy or snowy hills, wrestle with each other, bellyflop, somersault or juggle rocks while lying on their backs, according to the Smithsonian’s National Zoo and Conservation Biology Institute.

The otters in this video courtesy of Colin Chase have found a fun log to include in their games.

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Otters are social creatures but usually live alone in pairs. Parents raise two or three kits that are born in spring in a den near a river or stream, the Maine Department of Inland Fisheries and Wildlife website says.

They primarily eat fish, but also shellfish, crayfish and sometimes turtles, snakes, muskrats and small beavers, according to the MDIF&W.

Otters can swim up to a quarter mile under water, and their noses and ears close while they are submerged. They also have a membrane that closes over their eyes so they can see better under water, the Smithsonian said.

They are mostly nocturnal so it’s a treat to see them during the day, playing or hunting for food.



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Maine State Police respond to dozens of highway crashes amid Saturday snow

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Maine State Police respond to dozens of highway crashes amid Saturday snow


Maine State Police responded to more than 50 crashes and road slide-offs Saturday after southern Maine woke up to some light snowfall.

Police were responding to several crashes on the Maine Turnpike (Interstate 95) and Interstate 295 south of Augusta, state police said in a Facebook message posted around 10 a.m. Saturday.

Maine State Police spokesperson Shannon Moss said that as of early Saturday afternoon, more than 50 crashes had been reported on the turnpike and I-295.

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“The Turnpike has seen 24 crashes and slide offs primarily between Kittery and Falmouth with a higher concentration in Saco,” Moss wrote in an email. “The interstate has seen about 30 crashes and slide offs also in the Falmouth area but now in Lincoln and heading north.”

Moss said no injuries have been reported in any of the crashes.

“So far it appears visibility and driving too fast for road conditions are the causation factors,” Moss said.

State police reminded drivers to take caution, especially during snowy conditions, in the Facebook post.

“Please drive with extra care and give yourself plenty of space between you and the other vehicles on the roadway,” the post said. “Give the MDOT and Turnpike plows extra consideration and space to do their jobs to clear the roadway. Drive slow, plan for the extra time to get to your destination and be safe.”

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