Henry Schein Sells UK Software Development Unit; Enhances Focus on Core Growth Strategies
MELVILLE, N.Y.--(BUSINESS WIRE)--November 27, 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 its subsidiary, Henry Schein UK Holdings, Ltd., has sold its software development business, distributors of the DSD and Clockwork practice management software systems, to Software of Excellence United Kingdom, Ltd. While financial terms of the sale were not disclosed, Henry Schein expects to take a one-time charge during the fourth quarter of 2000 of approximately $0.03 per diluted share as a result of this transaction.
Under the new agreement, Henry Schein will distribute the new owner's full line of practice management systems. Software of Excellence will be responsible for development and technical support of the dental software systems.
"In an ongoing effort to enhance focus on our core growth businesses, we made the decision to exit the development and technical support aspects of these software products. The existing size of the user base did not substantiate the investment required to keep these products continuously updated," said Stanley M. Bergman, Chairman, Chief Executive Officer, and President of Henry Schein, Inc. "We are confident that our DSD and Clockwork customers will be well-served by Software of Excellence."
Henry Schein UK Holding is part of Henry Schein's International Group, which represents approximately 20% of the Company's total sales. The International Group is a leading distributor of dental products in Europe, and continues to expand in the medical and veterinary fields.
The Group currently has operations in 14 countries outside the U.S., including: the Netherlands, Spain, Belgium, the United Kingdom, Germany, France, Iceland, Israel, the Republic of Ireland, Mexico, Austria, Australia, New Zealand, and Portugal.
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.
| CONTACT: | Henry Schein, Inc. |
|---|---|
| Steven Paladino, 631/843-5500 | |
| Executive Vice President and | |
| Chief Financial Officer | |
| or | |
| Susan Vassallo, 631/843-5562 | |
| Manager, Investor and | |
| Public Relations | |
| svassa@henryschein.com | |