Henry Schein Expands in Germany Through Acquisition of Hager Dental GmbH
MELVILLE, N.Y.--(BUSINESS WIRE)--May 22, 2003--
Cash Transaction is Accretive, Advances European Full-Service Strategy
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 the dental distribution operations of Hager Dental GmbH, a privately held company based in Duisburg, Germany.
The transaction places Henry Schein among the largest dental distributors in Germany, adding over 40 field sales representatives and equipment sales and service capabilities to the Company's successful direct marketing business. The transaction is expected to close within 30 days. Terms of the all-cash acquisition were not disclosed.
The acquisition includes business operations in Gutersloh, Leipzig, Dortmund, Munich, Dresden and Duisburg, Germany, with reported 2002 sales of more than 50 million euros. Having been in business for 75 years, these operations provide dental consumable merchandise, equipment and service to approximately 18,000 customers across much of Germany. Henry Schein expects this acquisition to add $0.01 to $0.02 to the second half of 2003 diluted earnings per share, and $0.02 to $0.04 to 2004 diluted EPS.
"This purchase is an important step as we continue to execute on our full-service strategy in Germany, providing our customers with equipment sales and service to complement our successful national dental consumables offering," said Stanley M. Bergman, Chairman, Chief Executive Officer, and President of Henry Schein.
"With very little overlap between Hager Dental's operations and our current full-service businesses in Kiel and Hanover, we will now provide these full-service capabilities to dental customers in the western, southern and eastern regions of Germany. We are pleased to welcome our newest colleagues in Germany to Team Schein."
"Hager Dental and Henry Schein share a commitment to superior customer service," said Jan Odermann, Managing Director of Hager Dental. "We look forward to leveraging the capabilities of both Henry Schein and Hager Dental to the benefit of current and future customers across Germany.
Henry Schein expects no changes to the salesforce or territories of Hager Dental.
The acquisition increases the size and reach of Henry Schein's International Group, which currently serves more than 170,000 dental, medical, and veterinary practices in 14 countries outside of North America, primarily in Western Europe, Australia, and New Zealand. The Group has a 9 percent share of the estimated $3.2 billion Western European dental market, and a 4 percent share of the estimated $2.2 billion Western European medical and veterinary markets. For 2002, the Group posted record sales of $437 million.
About Henry Schein, Inc.
Henry Schein, Inc. is the largest distributor of healthcare products and services to office-based healthcare practitioners in the combined North American and European markets. Recognized for its excellent customer service and low prices, the Company 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 Web site 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.
CONTACT: Henry Schein, Inc. Steven Paladino, 631/843-5500
Susan Vassallo, 631/843-5562
svassa@henryschein.com