Henry Schein to Acquire the Full-Service and Special Markets Business of Becker-Parkin Dental Supply Co.
Acquisition Will Add Strength and Deeper Penetration in Key Markets
MELVILLE, N.Y.--(BUSINESS WIRE)--June 4, 2007--Henry Schein, Inc. (Nasdaq: HSIC), the largest provider of healthcare products and services to office-based practitioners in the combined North American and European markets, today announced it has entered into a definitive agreement which will enable it to acquire the full-service and special markets business of Becker-Parkin Dental Supply Co., a privately held company. The transaction is expected to be completed in July. Becker-Parkin's full-service business offers customers consumable dental products and equipment through field sales representatives, and the company's special markets business serves corporate dental customers with multiple offices and centralized purchasing. Combined, Henry Schein estimates these two businesses will contribute approximately $40-45 million in revenue in its first full year. Henry Schein expects the acquisition to be neutral to 2007 EPS and slightly accretive to 2008 earnings. This excludes a pretax gain of approximately $2 million in 2007, which will be realized upon the disposition of certain businesses of Becker-Parkin. Terms of the transaction were not disclosed.
"This is an exciting development in the continued growth of our U.S. Dental business," said Stanley M. Bergman, Chairman and Chief Executive Officer of Henry Schein. "This acquisition will expand and increase penetration for Sullivan-Schein Dental in key markets, including New York, Florida and Arizona, as well as continued leveraging of our existing infrastructure. We look forward to welcoming the approximate 25 full-service and special markets sales representatives of Becker-Parkin to Henry Schein."
About Becker-Parkin Dental Supply Co.
Becker-Parkin Dental Supply Co. was established over 70 years ago in New York City and grew to be a premium dental distributor serving New York City dentists. In the 1970s, the company added an equipment and service department, and began to expand its scope from regional to national. The company has grown to become one of the leading dental supply and equipment companies in the United States.
About Henry Schein
Henry Schein, a Fortune 500(R) company, is recognized for its excellent customer service and highly competitive prices. The Company's four business groups - Dental, Medical, International and Technology - serve more than 500,000 customers worldwide, including dental practitioners and laboratories, physician practices and animal health clinics, as well as government and other institutions. The Company operates through a centralized and automated distribution network, which provides customers in more than 200 countries with a comprehensive selection of more than 70,000 national and Henry Schein private-brand products in stock, as well as more than 100,000 additional products available as special-order items.
Henry Schein also offers a wide range of innovative value-added practice solutions for healthcare professionals, such as ArubA(R), the Company's electronic catalog and ordering system. Its leading practice-management software solutions have been installed in more than 50,000 practices, including DENTRIX(R) and Easy Dental(R) for dental practices, MicroMd(R) for physician practices, and AVImark(R) for animal health clinics.
Headquartered in Melville, N.Y., Henry Schein employs nearly 12,000 people and has operations in 19 countries. The Company's net sales reached a record $5.15 billion in 2006. For more information, visit the Henry Schein Web site at www.henryschein.com.
In accordance with the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995, we provide the following cautionary remarks regarding important factors which, 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: competitive factors; changes in the healthcare industry; changes in government regulations that affect us; financial risks associated with our international operations; fluctuations in quarterly earnings; our dependence on third parties for the manufacture and supply of our products; transitional challenges associated with acquisitions; financial risks associated with acquisitions; regulatory and litigation risks; the dependence on our continued product development, technical support and successful marketing in the technology segment; our dependence upon sales personnel and key customers; our dependence on our senior management; possible increases in the cost of shipping our products or other service trouble with our third-party shippers; risks from rapid technological change; risks from potential increases in variable interest rates; possible volatility of the market price of our common stock; certain provisions in our governing documents that may discourage third-party acquisitions of us; and changes in tax legislation that affect us. The order in which these factors appear should not be construed to indicate their relative importance or priority.
We caution that these factors may not be exhaustive and that many of these factors are beyond our ability to control or predict. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results. We undertake no duty and have no obligation to update forward-looking statements.
CONTACT: Henry Schein, Inc.
Executive Vice President and Chief Financial Officer
Steven Paladino, (631) 843-5500
steven.paladino@henryschein.com
or
Investors:
Vice President, Investor Relations
Neal Goldner, (631) 845-2820
neal.goldner@henryschein.com
or
Media:
Vice President, Corporate Communications
Susan Vassallo, (631) 843-5562
susan.vassallo@henryschein.com
SOURCE: Henry Schein, Inc.