Medical, dental, and veterinary supplies merchant Henry Schein started 2011 on a positive note by acquiring Provet Holdings Ltd., Australasia’s largest wholesale distributor of veterinary products. Henry Schein acquired Provet for about $91.2 million. Provet reported revenue for the fiscal year ended June 30, 2010 of about $278 million.
Established in 1982 Provet’s products and services include pharmaceuticals, pet nutrition products, consumables, instruments and equipment, and training and software. The Brisbane, Queensland-based company has about 375 employees and owns and operates 10 warehouses across Australia and three in New Zealand.
While Henry Schein has been quite in the past year, the $6.5 billion marketer is constantly on the hunt for acquisitions, says Chris Kampe, managing director for investment bank Tully & Holland. The company recently entered into new $400 million private placement shelf facilities with two insurance companies with the intent to use at least part of the proceeds to fund potential acquisitions, he says.
“Henry Schein’s acquisition strategy is to exploit and consolidate the fragmented global wholesale distribution markets for healthcare and related products,” Kampe explains. “The acquisition of Provet gives Henry Schein a position in the wholesale distribution of veterinary products and in the Australian market.”
Kampe says the acquisition multiple was about 7.5 times EBITDA.