Distributor Henry Schein ($HSIC) is making good on its promise to expand its reach in animal health, announcing June 23 that it has acquired an 85% stake of Jorgen Kruuse, a leading provider of veterinary services and supplies in Denmark, Norway, and Sweden. Schein expects the transaction to close in the third quarter and be accretive to earnings starting next year.
Schein did not provide financial details about the acquisition in a press release announcing the deal, saying only that the Kruuse family retains ownership over the rest of the company, which had 2014 sales of about $90 million.
KRUUSE offers pet accessories, capital equipment, and pet food to veterinary clinics and retail stores in more than 100 countries. Its products include surgical tools, dental equipment, and rehabilitation supplies.
The deal is the latest in a string of acquisitions and joint ventures that Schein has made in the last few years to expand its $2.9-billion-a-year animal health business. The company says the KRUUSE deal will help it to grow its presence in 23 countries, including Australia, Canada, China, Malaysia and 17 European markets.
"KRUUSE enjoys deep customer loyalty and satisfaction, as well as a reputation for quality products and strong brand awareness," said Schein's CEO Stanley Bergman in the release. "Building upon our recent acquisitions of scil animal care in Germany, Maravet in Romania, and SmartPak in the U.S., our animal health business continues to thrive while gaining market share through a combination of solid organic growth and strategic transactions."
KRUUSE's CEO, Jesper Smith, is joining Schein as manager of the family's brand. "Combining KRUUSE with Henry Schein Animal Health is an important component of our strategic plan for geographic expansion, brand development and revenue growth," he said in the release.
- here's the release