Henry Schein, Inc. (NASDAQ: HSIC) announced today that it will acquire 85 percent of Jorgen Kruuse A/S (KRUUSE), a leading distributor of veterinary supplies in the Nordic countries and a growing international provider of veterinary products and services. KRUUSE had sales in 2014 of approximately $90 million, and will extend Henry Schein's geographic presence to Denmark, Norway and Sweden.
The remaining 15 percent of KRUUSE will be retained by the Kruuse family. Henry Schein expects the transaction to close in the third quarter of 2015, and for the acquisition to be neutral to its earnings per share from the date of closing through the end of 2015 and accretive thereafter. Additional financial details of the transaction were not disclosed.
Founded in 1896 and headquartered in Langeskov, Denmark, KRUUSE offers a comprehensive portfolio of proprietary products and branded consumable merchandise, as well as pet accessories, capital equipment and pet food to veterinary clinics and retail pet stores in Denmark, Norway and Sweden. In addition, KRUUSE has an operational presence in Poland, the United Kingdom, and China. KRUUSE also serves customers in more than 100 countries through a network of distribution partners, with particular presence across Europe and the United Kingdom. KRUUSE has approximately 250 team members.
Through the acquisition of KRUUSE, Henry Schein's animal health business will expand to 23 countries, including the United States, Australia, New Zealand, Canada, China, Malaysia and 17 countries in Europe. In 2014, Henry Schein's Global Animal Health business had sales of approximately $2.9 billion.
"We are delighted to be entering the Nordic animal health market with a well-recognized family company that offers a highly regarded line of KRUUSE-branded products," said Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein. "KRUUSE enjoys deep customer loyalty and satisfaction, as well as a reputation for quality products and strong brand awareness. 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."
Jesper Smith, who has served as Chief Executive Officer of KRUUSE since 2009, will join Henry Schein with continued responsibility for the KRUUSE business. Other members of the KRUUSE leadership team will remain with the company, including Mads Kruuse, currently a Director, and Peter Eriksen Jensen, currently Chairman.
"Combining KRUUSE with Henry Schein Animal Health is an important component of our strategic plan for geographic expansion, brand development and revenue growth," said Mr. Smith. "We are thrilled at the opportunity to be united with a global leader in animal health, and a company that shares our passion for providing the highest-quality care for companion, livestock and production animals, and helping our customers' businesses to succeed."
Henry Schein plans to expand the reach of KRUUSE's line of proprietary pet products to animal health customers across Europe, North America, Australia and New Zealand.
According to Peter McCarthy, President, Henry Schein Global Animal Health Group, "KRUUSE is an excellent fit with Henry Schein, and in many ways is the prototype of what makes for a successful strategic transaction. KRUUSE has a long and distinguished history, and having established an enviable position in the Nordic countries, they are now poised for further growth and business success. Henry Schein will bring to KRUUSE valuable resources and expertise, while KRUUSE will strengthen our animal health presence across Europe."
The acquisition of KRUUSE will increase the number of countries where Henry Schein has operations or affiliates to 33. This includes Henry Schein's recent 50 percent ownership investment in Maravet, a leading animal health distributor in Romania.