Henry Schein Acquisition of Colonial Surgical Strengthens Examination Glove Product Category; Cash Transaction is Immediately Accretive
MELVILLE, N.Y., Jun 2, 2003 (BUSINESS WIRE) -- 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 the signing of an agreement to acquire Colonial Surgical, a privately held company headquartered in Los Angeles.
The transaction is expected to close within 15 days. Terms of the all-cash acquisition were not disclosed.
Colonial's revenues of over $40 million in 2002 were primarily derived from distributing its own brands, as well as nationally branded examination gloves, to dental practitioners in the United States. Henry Schein expects this acquisition to add $0.02 to $0.03 to the second half of 2003 earnings per diluted share, and $0.04 to $0.06 to 2004 diluted EPS.
"Acquiring Colonial's business significantly increases our sales of an important product line within the critical asepsis control product category, and brings to Henry Schein relationships with thousands of new customers. This transaction also immediately adds to our sales and bottom-line financial results, and holds opportunity for expanded examination glove sales in our domestic and international dental, medical and veterinary businesses. In addition, we expect to realize important efficiencies and cost savings, in particular in the areas of operations, purchasing and financial functions," said Stanley M. Bergman, Chairman, Chief Executive Officer and President of Henry Schein.
"Our new colleagues at Colonial are experts in the examination glove product category and bring considerable market intelligence and expertise to our Company," continued Mr. Bergman. "I am pleased to welcome the Colonial team to Team Schein."
"Henry Schein is a strong business partner known for its industry-leading commitment to innovation and customer service," said Michael Saleh, President and Founder of Colonial Surgical. "The benefits of this acquisition to Colonial and our customer base are tremendous, and we look forward to the many opportunities available to us as part of the Henry Schein organization."
Recognized for its excellent customer service and low prices, Henry Schein serves more than 400,000 customers worldwide, including dental practices and laboratories, physician practices and veterinary clinics, as well as government and other institutions.
The Company operates its four business groups - Dental, Medical, International and Technology - 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 49,000 practices; and ArubA(R), Henry Schein's electronic catalog and ordering system. Headquartered in Melville, New York, Henry Schein employs over 6,900 people in 16 countries. The Company's 2002 sales reached a record $2.8 billion. For more information, visit the Henry Schein Website at www.henryschein.com.
Certain information contained herein includes information that is forward-looking. The matters referred to in forward-looking statements may be affected by the risks and uncertainties involved in the Company's business. These forward-looking statements are qualified in their entirety by the cautionary statements contained in the Company's Securities and Exchange Commission filings.
SOURCE: Henry Schein, Inc.
Henry Schein, Inc.Steven Paladino, 631/843-5500
or
Susan Vassallo, 631/843-5562
svassa@henryschein.com