FTC's Lina Khan jabs at private equity's health care ambitions
The Federal Trade Commission ordered JAB Consumer Partners to divest 16 veterinary clinics that JAB had acquired via a portfolio company's $1.1 billion purchase of SAGE Veterinary Partners.
Why it matters: The accompanying press release suggests that the FTC is looking hard at private equity activity in the healthcare sector, particularly when it comes to roll-ups that it's traditionally ignored.
Details: JAB consented to the order, and also to a requirements that it must notify the FTC 30 days prior to acquiring any U.S. vet clinic that's within 25 miles of another JAB-owned clinic.
- Plus, it needs FTC approval for any vet clinic purchase within 25 miles of another JAB-owned clinic in California or Texas.
The bottom line: FTC chair Lina Khan has recently said she prefers litigation to negotiation, so it's a bit surprising to see a consent decree here. But this might just be cleaning out the old pipeline, since JAB originally announced this deal last summer, just weeks after Khan was sworn in.