Henry Schein to buy Provet Holdings for $91M
Henry Schein Inc. said Thursday it has agreed to buy Australian veterinary products distributor Provet Holdings Ltd. In a cash-for-stock deal valued at $91 million.
Under the terms of the deal, Henry Schein will pay Provet shareholders $2.12 for each outstanding share, representing a premium of 35 percent over the closing price of $1.58 on Monday.
The boards of directors for both companies have approved the deal, which is expected to close toward the end of this year.
"The acquisition of Provet Holdings will mark our entree into the $614 million Australasian veterinary market," said Stanley Bergman, the company's chairman and CEO.
Henry Schein expects the acquisition will be neutral to its 2011 earnings per share and will add between 2 cents and 3 cents a share to its 2012 earnings.
The company estimates that the Provet acquisition will help boost annual revenue from its global animal health business to nearly $2 billion.
Based in Brisbane, Queensland, Provet Holdings reported revenue for fiscal year ended June 30 of about $278 million.
Shares in Henry Schein added 3 cents to $59.28 on Thursday.