Henry Schein plans to divest its animal health business unit
Date: 2018-04-24   Author: Ojaswita Kutepatil  Category: #market

Henry Schein plans to divest its animal health business unit

One of New York’s leading publicly traded firm by revenue, Henry Schein Inc., has recently announced its plans to spin off its USD 3.5 billion veterinary supply business and unite it with Vets First Choice.

Elaborating on the details of the merger deal, sources revealed that it will combine Henry Schein’s animal health supply business, distribution network, and its software for practices with the prescription management platform of Vets First Choice. The combined company will be named as Vets First Corp., and will be located in Portland, Maine. Incidentally, Vets First Choice raised USD 223 million from investment firms last year.

Industry experts speculate that this move by Henry Schein has created an innovative approach of advancing in the animal healthcare industry. They further deem that the merger deal gives the 8-year-old Vets First Choice the chance to go public without even having to perform an initial public offering.

Reports revealed that Henry Schein’s animal health business generated over USD 3.48 billion in terms of revenue in 2017. In the coming three years, the company further expects to accelerate its revenue growth by combining Vets First Choice platform across Henry Schein customer base, significantly adding more than USD 100 million in its operating income.

Henry Schein said that it anticipates to receive about USD 1 to 1.25 billion in cash from the transaction. The company’s shareholders will own about 63% of the new company, while Vets First Choice stakeholders will be entitled to own over 37% of it.

The regional animal healthcare industry is currently treading along a lucrative roadmap as the American populace has been increasingly investing in pets and their health, cite industry experts. In essence of this burgeoning animal healthcare market scenario, several companies are looking forward to invest in newer growth avenues in this industry.

Meanwhile, the growing threat of Amazon’s entry into the healthcare industry has urged several companies to focus on strengthening their roots. Henry Schein revealed that by spinning off & combining its animal health business, it will be able to focus more on its medical supply and dental businesses.



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Ojaswita Kutepatil

Ojaswita Kutepatil

Ojaswita Kutepatil, a mechanical engineer by qualification, worked as a BDE and Technical Engineer before switching her profession to content writing. Currently, she works at AlgosOnline. as an Content writer, where she pens down write-ups pertaining to the market res...

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