is branching out. The $1.6 billion cataloger of dental and veterinary supplies is entering the physical and occupational therapy markets by acquiring AbilityOne Products Corp., a cataloger of rehabilitative supplies.
St. Paul, MN-based Patterson says the acquisition is valued at approximately $575 million and will be debt financed. The transaction is expected to close during Patterson’s financial quarter ending Oct. 25. The price paid for the AbilityOne business, in relation to operating profit, is comparable to the multiple Patterson paid to enter the veterinary market with the acquisition of Webster Veterinary Supply in July 2001.
AbilityOne expects sales to top $220 million this year. The Chicago-based company sells more than 15,000 rehabilitation and assistive products from more than 1,500 suppliers to acute care hospitals, nursing homes, rehabilitation clinics, dealers, and schools.