Henry Schein Selling and Buying

Melville, NY-based business-to-business healthcare cataloger Henry Schein announced one day that it would sell off one business unit, then bought another company the next day. On March 6, Henry Schein announced it had agreed to sell its hospital supply business, including its extended care business, to St. Louis-based MMS, which was founded in 1970 as Midwest Medical Supply. The agreement is subject to certain closing conditions, including the purchaser obtaining financing for the transaction. Schein announced on Oct. 25 its intent to divest the hospital supply business, stating that it provided little or no synergies with its core customers of office-based practitioners.

The $4.6 billion Henry Schein then on March 8 revealed that it signed a definitive agreement to acquire NLS Animal Health, a privately held, full-service veterinary distribution business, based in Owings Mills, MD. NLS Animal Health serves approximately 8,000 companion animal clinics in 26 South-Central, Mid-Atlantic, and Northeast states, and had 2005 sales of about $110 million. More than 60 sales representatives will be added to Henry Schein’s existing veterinary sales force as a result of the acquisition.

Henry Schein CEO Stanley M. Bergman said in a statement that NLS Animal Health is an ideal strategic and cultural fit for its U.S. companion-animal veterinary market strategy. Schein spokesperson Susan Vassallo said the transaction price was not being disclosed for either deal.