Henry Schein, Inc. (NASDAQ: HSIC), 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. 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. 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 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.
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. For more information, visit the Henry Schein website at www.henryschein.com.