DOW JONES NEWSWIRES
Henry Schein Inc. (HSIC) said it has agreed to acquire Provet
Holdings Ltd. (PVT.AU) in a AUD$93.2 million (US$92.3 million) deal
that will mark its entrance into the veterinary markets of
Australia and New Zealand.
The U.S. health-care products company has offered to pay
Provet's stockholders AUD$2.14 a share, a 35% premium from its last
closing price before the deal was announced.
Henry Schein, which sells health-care products to doctors' and
dentists' offices, said the acquisition of the veterinary products
and services provider likely won't affect its earnings next year
and will add 2 to 3 cents to 2012 per-share earnings.
The company's animal health segment will have annual revenue of
nearly US$2 billion after the acquisition. "Through strategic
acquisitions and internal growth, our animal health business has
become an increasingly important part of our company," said
Chairman and Chief Executive Stanley Bergman.
Henry Schein's dental segment has more than 400 employees at six
sales offices and showrooms and five distribution centers in
Australia and New Zealand.
The deal, which requires approval of Provet shareholders and the
courts, is expected to close near the end of the year.
Top executives of the Australia-based company, which went public
in that country in March, will continue in their roles after the
acquisition.
In August, Henry Schein reported a 14% increase in
second-quarter earnings as it repeated double-digit top-line gains
from the first part of the year. Sales have held up fairly well
through the recession because of solid international demand.
However, second-quarter revenue growth in the biggest domestic
business outpaced that of international operations.
Henry Schein's shares closed at $59.28 and were inactive after
hours. They were up 13% this year as of the close.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com