One of Britain’s biggest chains of veterinary clinics is to cash in on a spike in pet ownership during the pandemic by putting itself up for sale with a £1bn price tag.

Sky News has learnt that Medivet is to launch an auction process in the coming weeks following a string of merger and takeover activity in the sector.

Medivet, which operates around 300 branches and more than 20 round-the-clock clinics across the UK, has been part-owned by Inflexion Private Equity since 2016.

Investment bankers at HSBC have been hired to run the auction process, according to insiders.

Sources said there were was likely to be substantial interest from bidders because of the opportunity to continue consolidating what remains a fragmented industry.

The potential for expansion into European markets is also likely to be a focus for an eventual buyer, they added.

Inflexion stands to make a handsome return from any sale, with other slugs of equity owned by Medivet’s veterinary practice-owners as well as current and former executives.

It would be the latest large deal in the industry this year, following IVC Evidensia’s sale of a €3.5bn (£3bn) stake to Silver Lake, the buyout firm, and Nestle.

That deal valued IVC Evidensia at more than £10bn.

Inflexion declined to comment.

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