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 has acquired a 60 percent ownership investment in ABASE, a family-owned distributor of veterinary health care products with a strong presence in Brazil's Campinas region in the state of Sao Paulo.
Headquartered in Jaguariuna, ABASE sells pharmaceuticals, pet food, diagnostic equipment and consumables primarily to the companion animal, swine, poultry and bovine segments. ABASE had 2017 revenues of approximately $27 million.
Henry Schein expects the transaction to be neutral to its 2018 earnings per share and to be accretive thereafter. Financial terms were not disclosed.
"This ownership investment strengthens our position in Brazil's animal health market, which we established earlier this year in the state of Rio de Janeiro with our investment in Tecnew. It also diversifies our relationship with global suppliers and approximately doubles our volume in Brazil," said Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein. "We look forward to leveraging the expertise between Tecnew and ABASE to further advance both businesses and to focus on new opportunities to help veterinarians in Brazil run more efficient, successful practices while providing the highest quality care."
ABASE was founded in 1990 by Edison Baba, who will retain a minority ownership position and continue to lead the business as a Managing Director. The company has approximately 90 employees, including a sales staff of more than 45 team members, and operates a centralized distribution center in Jaguariuna.
According to Baba, "In combining our resources with the deep expertise of Henry Schein, a global leader in animal health, we look forward to building upon our history of steady growth. ABASE shares with Henry Schein a commitment to customer success, and we are excited to bring existing and new customers a broader array of products, value-added services, and technology solutions."
Henry Schein's Global Animal Health business had 2016 net sales of $3.3 billion and has operations or affiliates in 24 countries including the United States, Australia, New Zealand, Brazil, Canada, China, Malaysia, and 17 countries in Europe. The company supports animal health practitioners through the distribution of biologics, pharmaceuticals, supplies and equipment, and by actively engaging in the development, sale, and distribution of veterinary practice management software.
About Henry Schein, Inc.
Henry Schein, Inc. (Nasdaq: HSIC) 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 S&P 500® and the NASDAQ 100® indexes, Henry Schein employs more than 22,000 Team Schein Members and serves more than 1 million 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 120,000 branded products and Henry Schein private-brand products in stock, as well as more than 180,000 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 34 countries. The company's sales reached a record $11.6 billion in 2016, and have grown at a compound annual rate of approximately 15 percent since Henry Schein became a public company in 1995. For more information, visit Henry Schein at www.henryschein.com, Facebook.com/HenrySchein and @HenrySchein on Twitter.