Expands Company's Animal Health Equipment Capabilities in North America and Europe with Specialty Diagnostics Distribution Business
MELVILLE, N.Y., Jan. 19, 2015 /PRNewswire/ -- Henry Schein, Inc. HSIC, +1.21% the world's largest provider of health care products and services to office-based dental, animal health and medical practitioners, announced today that it will acquire scil animal care company GmbH, a distributor of animal health laboratory and imaging diagnostic products and services to veterinarians primarily in North America and Europe.
For the 12 months ended September 30, 2014, scil animal care had sales of approximately $70 million. Henry Schein expects the acquisition to be slightly dilutive to its 2015 earnings per share. Subject to regulatory approval, the transaction is expected to close in the second quarter of 2015. Financial details of the transaction were not disclosed.
Founded in 1998 with headquarters in Viernheim, Germany, scil animal care sells, services and supports laboratory diagnostic and imaging solutions to veterinarians in the United States, Canada, Germany, France, Italy, the Netherlands and Spain, with a distribution presence in 25 additional countries. In addition to the selection of products it offers customers, scil animal care provides product installation and training, loaner and repair services, as well as a broad array of educational programs. Among scil animal care's more than 200 employees are 32 veterinarians, 26 equipment specialists and more than 70 sales representatives.
Dr. Hartmut Jaissle, who has served as Chief Executive Officer of scil animal care since May 2012, will continue to lead the business. Dr. Jaissle became a licensed veterinarian in 1991, and transitioned from clinical practice to the business of animal health in 1995 with subsequent positions at Colgate-Palmolive Company, Aesculap AG and B. Braun Melsungen AG. Dr. Jaissle and the scil animal care employees will become part of Henry Schein's global Animal Health business.
"We look forward to expanding Henry Schein's Animal Health equipment capabilities in North America and Europe with the addition of scil animal care's specialty diagnostics distribution business, a critical element to help veterinarians provide high-quality care and increase practice revenues," said Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein. "We will be delighted to welcome the scil animal care employees to Team Schein. The scil animal care professionals will enhance our Animal Health business's equipment sales and support capabilities, representing our key supplier partners and introducing veterinarians to important diagnostic options. This will be a significant step forward in expanding our diagnostics product category and gaining market share for our animal health diagnostics partners, including Abaxis, Inc. and Heska Corporation."
"The partnership with Henry Schein Animal Health will represent an important step for the scil animal care organization," said Dr. Jaissle. "Henry Schein Animal Health understands that the veterinarian is the source of credible clinical information in the animal health industry. Focusing on and educating veterinary professionals has been the key to scil's success for nearly 20 years. We are excited to find a partner that shares our passion for expanding the important diagnostic solutions that veterinarians provide to their customers."
As veterinarian practices increasingly adopt digital technologies, Henry Schein is committed to offering diagnostic solutions with tight and seamless connectivity to its practice management systems, including AVImark® and ImproMed®.
The addition of scil animal care will add Canada and Italy to the list of countries where Henry Schein Animal Health serves veterinary customers. Henry Schein Animal Health currently serves customers in 12 European countries, including Austria, Belgium, the Czech Republic, France, Germany, Holland, Ireland, Poland, Portugal, Spain, Switzerland and the United Kingdom. The Company also has Animal Health businesses in the United States, Australia and New Zealand. In 2013, Henry Schein's global Animal Health business had sales of approximately $2.6 billion.
About Henry Schein, Inc.Henry Schein, Inc. is the world's largest provider of health care products and services to office-based dental, animal health and medical practitioners. The Company also serves dental laboratories, government and institutional health care clinics, and other alternate care sites. A Fortune 500® Company and a member of the NASDAQ 100® Index, Henry Schein employs more than 17,000 Team Schein Members and serves more than 800,000 customers.
The Company offers a comprehensive selection of products and services, including value-added solutions for operating efficient practices and delivering high-quality care. Henry Schein operates through a centralized and automated distribution network, with a selection of more than 96,000 branded products and Henry Schein private-brand products in stock, as well as more than 110,000 additional products available as special-order items. The Company also offers its customers exclusive, innovative technology solutions, including practice management software and e-commerce solutions, as well as a broad range of financial services.
Headquartered in Melville, N.Y., Henry Schein has operations or affiliates in 28 countries. The Company's sales reached a record $9.6 billion in 2013, and have grown at a compound annual rate of approximately 16 percent since Henry Schein became a public company in 1995. For more information, visit the Henry Schein website at www.henryschein.com.
Cautionary Note Regarding Forward-Looking StatementsIn accordance with the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995, we provide the following cautionary remarks regarding important factors that, among others, could cause future results to differ materially from the forward-looking statements, expectations and assumptions expressed or implied herein. All forward-looking statements made by us are subject to risks and uncertainties and are not guarantees of future performance. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These statements are identified by the use of such terms as "may," "could," "expect," "intend," "believe," "plan," "estimate," "forecast," "project," "anticipate" or other comparable terms. A full discussion of our operations and financial condition, including factors that may affect our business and future prospects, is contained in documents we have filed with the SEC and will be contained in all subsequent periodic filings we make with the SEC. These documents identify in detail important risk factors that could cause our actual performance to differ materially from current expectations.
Risk factors and uncertainties that could cause actual results to differ materially from current and historical results include, but are not limited to: effects of a highly competitive market; our dependence on third parties for the manufacture and supply of our products; our dependence upon sales personnel, customers, suppliers and manufacturers; our dependence on our senior management; fluctuations in quarterly earnings; risks from expansion of customer purchasing power and multi-tiered costing structures; possible increases in the cost of shipping our products or other service issues with our third-party shippers; general global macroeconomic conditions; disruptions in financial markets; possible volatility of the market price of our common stock; changes in the health care industry; implementation of health care laws; failure to comply with regulatory requirements and data privacy laws; risks associated with our global operations; transitional challenges associated with acquisitions and joint ventures, including the failure to achieve anticipated synergies; financial risks associated with acquisitions and joint ventures; litigation risks; the dependence on our continued product development, technical support and successful marketing in the technology segment; risks from challenges associated with the emergence of potential increased competition by third party online commerce sites; risks from disruption to our information systems; certain provisions in our governing documents that may discourage third-party acquisitions of us; and changes in tax legislation. The order in which these factors appear should not be construed to indicate their relative importance or priority.
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SOURCE Henry Schein, Inc.
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