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 its U.S. Animal Health business, Henry Schein Animal Health, has completed its acquisition of an approximate 60% ownership position in SmartPak, the leading provider of equine supplements and horse supplies across the United States. This transaction was first announced on May 22, 2014.
As previously reported, SmartPak had sales in 2013 of approximately $105 million. Private equity firm Oak Hill Capital Partners and SmartPak's existing management team will own SmartPak's remaining equity. Financial terms of the transaction were not disclosed. As stated when Henry Schein first announced its agreement with SmartPak, Henry Schein expects the transaction to be neutral to its earnings per share for the second half of 2014 and full-year 2015 and accretive to earnings per share in 2016 by $0.02-$0.03.
"SmartPak is a highly regarded, fast-growing company that nicely complements our existing U.S. animal health business, and we are delighted to have completed this transaction," said Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein. "Henry Schein has built a position of global leadership in the animal health market, and we look forward to continued opportunities for growth with SmartPak and across our animal health platform."
In addition to its U.S. Animal Health business, Henry Schein is the leading distributor of products and services to veterinary practitioners in Australia and New Zealand, and the leading pan-European veterinary distributor. Henry Schein has European animal health operations in Austria, Belgium, the Czech Republic, France, Germany, Ireland, Poland, Portugal, Spain, Switzerland, The Netherlands, and the United Kingdom. In 2013, Henry Schein's Global Animal Health business had sales of approximately $2.6 billion.
From the feed room to the tack room, SmartPak offers innovative solutions to help riders take great care of their horses. SmartPak was founded in 1999 with the introduction of the patented SmartPak supplement feeding system.
The revolutionary, daily dose SmartPaks are custom-made for horses, individually labeled and sealed for freshness. With the success of this simple and convenient feeding system, SmartPak has continued to expand its offering of quality products, including its own line of more than 55 supplement formulas called SmartSupplements, and a wide variety of tack, equipment, and supplies. The Company has grown rapidly each year and is the largest retailer of equestrian products in the United States. SmartPak's success has been powered by a passion for delivering an unbeatable customer experience, and the Company has been recognized with a Bizrate Circle of Excellence award as well as an "Elite" rating from STELLAService. These awards recognize retailers for providing excellent customer service to their online customers. A nine-time Inc. 500/5000 list honoree, SmartPak is the only equine company ever named to the Inc. 500 list.
Oak Hill Capital Partners is a private equity firm with more than $8 billion of initial capital commitments from leading entrepreneurs, endowments, foundations, corporations, pension funds, and global financial institutions. Since inception 28 years ago, the professionals at Oak Hill Capital and its predecessors have invested in more than 70 significant private equity transactions across broad segments of the U.S. and global economies. Oak Hill Capital applies an industry-focused, theme-based approach to investing in the following sectors: Consumer, Retail & Distribution; Industrials; Media & Communications; and Services. Oak Hill Capital works actively in partnership with management to implement strategic and operational initiatives to create franchise value.
Henry Schein Animal Health, based in Dublin, Ohio, is a leading companion animal health distribution company in the United States. The Company employs approximately 900 team members, including 300 field sales representatives and 200 telesales and customer support representatives. With 13 strategically located, state-of-the-art distribution facilities and 10 inside sales centers, the Company maintains a greater than a 99 percent order-fill ratio, accomplishing its mission of providing the right product at the right place and the right time.
Henry Schein Animal Health partners with over 480 channel suppliers to bring veterinarians the broadest selection of products to companion animal, equine and large animal practices including: dental, diagnostics, diets, equipment and supplies, nutraceuticals, orthopedics, parasiticides, pharmaceuticals and more.
In addition, the Company helps veterinarians grow their practice with its strategic business solutions including AVImark® and ImproMed® Practice Management Software, Henry Schein Financial Services, Henry Schein ProRepair, HRVetResource, Intelligent Inventory, Leadership Intelligence, MyVetDirect.com Home Delivery, Opperman Manual, OSHA Compliance Solutions, Pet I.D. Cards, Privacy Edge Identify Theft Protection, Professional Development Program, SmartPak, VetPressOnline Client Communications, Veterinary Instrumentation®, website development and more. For more information, visit www.henryscheinvet.com.
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 27 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.