Henry Schein Sells Interest In Novocol Anesthetic Manufacturer
MELVILLE, N.Y.--(BUSINESS WIRE)--Oct. 23, 2000--Henry Schein, Inc. (Nasdaq:HSIC), the largest provider of healthcare supplies to office-based practitioners in the combined North American and European markets, announced today that in an ongoing effort to sharpen its focus on the Company's core value-added distribution business it has sold its 50% interest in dental anesthetic manufacturer Novocol Pharmaceutical of Canada, Inc. (Novocol). Although terms of the sale were not disclosed, the Company said it expects to take a non-recurring loss on the divestiture of approximately $.05 per share in the fourth quarter of 2000.
Henry Schein will sell its interest to Novocol's current co-owner, Deproco, Inc., a U.S. company privately-owned by Specialties Septodont, S.A. of France, the largest manufacturer of dental anesthetic in Europe. Henry Schein will continue to purchase anesthetic product from Novocol.
"Novocol represented our only manufacturing asset, and divesting this business supports our primary strategy of growing Henry Schein's core business as a value-added distributor of healthcare products and services to office-based practitioners," said Stanley M. Bergman, Chairman, President and Chief Executive Officer of Henry Schein.
Mr. Bergman also noted that the Company will continue to review other areas within the Company that are not aligned with its core growth strategies.
Since 1985, Novocol, whose products are sold under the Novocol brand and private label brand names, has operated as an unconsolidated affiliate of Henry Schein. Henry Schein's share of losses in Novocol were approximately $2.9 million, and $0.5 million, in 1999, and the nine months ended September 2000, respectively.
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. Henry Schein offers a wide range of innovative value-added practice solutions, such as its leading dental practice management software systems DENTRIX(R) and Easy Dental(R), which is installed in over 35,000 practices; and ArubA(R), Henry Schein's electronic catalog and ordering system.
Headquartered in Melville, New York, Henry Schein employs more than 6,000 people in 15 countries. The Company's 1999 sales reached a record $2.3 billion.
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.
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| CONTACT: | Henry Schein, Inc., Melville |
|---|---|
| Steven Paladino | |
| Executive Vice President and Chief Financial Officer | |
| 631/843-5500 | |
| Susan Vassallo, Manager, Investor and Public Relations | |
| 631/843-5562 | |
| svassa@henryschein.com | |