Henry Schein Acquires Ash Temple, a Canadian Full-Service Dental Distributor
MELVILLE, N.Y.--(BUSINESS WIRE)--Jan. 11, 2005--Henry Schein, Inc. (Nasdaq NM: HSIC), the largest provider of healthcare products and services to office-based practitioners in the combined North American and European markets, today announced that it has acquired the dental distribution business of Ash Temple Limited (ATL), a privately held full-service dental distributor based in Concord, Ontario, with revenues of approximately USD $100 million in the last fiscal year. The acquisition is expected to be immediately accretive to Henry Schein. Terms of the transaction were not disclosed.
First established over 100 years ago, ATL operations will be combined with Henry Schein Arcona, Henry Schein's Canadian dental business, and operate under the new name Henry Schein Ash Arcona. Through the acquisition, Henry Schein Arcona's 100-person dental sales force will double as the new entity provides dental practitioners across Canada with a full range of dental products and services.
"Combining our Henry Schein Arcona operations with Ash Temple is an ideal strategic and cultural fit, and firmly positions us as the leading dental company in the expanding market for dental merchandise and equipment in Canada," said Stanley M. Bergman, Chairman, Chief Executive Officer and President of Henry Schein. "We believe the addition of Ash Temple, with its broad presence across Canada and strength in dental equipment and laboratory products, will perfectly complement Henry Schein's strong expertise in logistics as well as in the marketing and merchandising of dental consumables. We look forward to Henry Schein Ash Arcona offering customers the many benefits of the newly combined entity and providing dental practitioners and laboratories with the highest level of quality products and services for all their practice needs."
"Henry Schein first entered the Canadian market in the late 1980s and we have continuously increased our presence in this important market, including acquiring Arcona in 1998, continued Mr. Bergman. "We are very excited now to be adding Ash Temple, a company rich with tradition and history, and pleased that the Ash Temple team members will be joining Team Schein. We are particularly pleased that the strong senior management of both teams will combine their talents to guide Henry Schein Ash Arcona. We are very pleased to welcome Michel Hart, the Chairman and CEO of Ash Temple, who will assume the position of Chairman of the new entity, and Cy Elborne, the President and Chief Operating Officer of Ash Temple, who will manage the Henry Schein Ash Arcona sales force in the position of Executive Vice President, Sales. Joe Robertson and Carman Adair of Henry Schein Arcona will assume the roles of President, and Chief Operating Officer, respectively, for Henry Schein Ash Arcona."
"We are delighted to become part of Henry Schein and to offer our customers a total solution including a greater variety of dental operatory and laboratory merchandise, equipment, software and more," said Mr. Hart. "Ash Temple, like Henry Schein, is built upon a commitment to providing the highest level of customer service, and we look forward to the many business opportunities we face in concert with Henry Schein Arcona."
About Ash Temple Ltd.
With a history that dates to 1895, Ash Temple offers dental supplies, equipment, artificial teeth and repair parts, as well as services including office design and planning, equipment lease financing and limited consulting. Built on a tradition of integrity and quality, Ash Temple is one of the largest diversified dental companies in Canada with 14 branches including five distribution centers. Ash Temple services all 10 Canadian provinces and three territories, while operating under the name Servident in Quebec. Ash Temple serves approximately 17,200 dentists, 2,200 laboratory technicians and 2,000 denturists.
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 450,000 customers worldwide, including dental practices and laboratories, physician practices and veterinary clinics, as well as government and other institutions.
The Company's sales reached a record $3.4 billion in 2003. Henry Schein operates through a centralized and automated distribution network, which provides customers in more than 125 countries with a comprehensive selection of over 90,000 national and Henry Schein private-brand products.
Henry Schein also offers a wide range of innovative value-added practice solutions, including such leading practice management software systems as DENTRIX(R) and Easy Dental(R) for dental practices, and AVImark(R) for veterinary clinics, which are installed in over 50,000 practices; and ArubA(R), Henry Schein's electronic catalog and ordering system.
Headquartered in Melville, N.Y., Henry Schein employs nearly 10,000 people and has operations in 17 countries. 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, the Company provides 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 guaranties of future performance. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's 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 the Company's operations and financial condition, including factors that may affect its business and future prospects, is contained in documents the Company has filed with the SEC and will be contained in all subsequent periodic filings made with the SEC. These documents identify in detail important risk factors that could cause the Company's actual performance to differ materially from current expectations.
Risk factors and uncertainties which 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 the Company; financial risks associated with the Company's international operations; fluctuations in quarterly earnings; transitional challenges associated with acquisitions; regulatory and litigation risks; the dependence on the Company's continued product development, technical support and successful marketing in the technology segment; the Company's dependence upon sales personnel and key customers; the Company's dependence on its senior management; the Company's dependence on third parties for the manufacture and supply of its products; possible increases in the cost of shipping the Company's products or other service trouble with the Company's third-party shippers; risks from rapid technological change; and risks from potential increases in variable interest rates.
The order in which these factors appear should not be construed to indicate their relative importance or priority. The Company cautions that these factors may not be exhaustive and that many of these factors are beyond the Company's ability to control or predict. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results. The Company undertakes no duty and has no obligation to update forward-looking statements.
CONTACT: Henry Schein, Inc.
Steven Paladino, 631-843-5500
steven.paladino@henryschein.com
or
Susan Vassallo, 631-843-5562
susan.vassallo@henryschein.com
SOURCE: Henry Schein, Inc.