March 2006                return to newsletter contents page

Henry Schein Enters Agreement to Acquire NLS Animal Health  

Henry Schein, Inc. (Nasdaq: HSIC), the largest provider of healthcare products and services to office-based practitioners in the combined North American and European markets, announced that it has signed a definitive agreement to acquire NLS Animal Health, a privately held, full-service veterinary distribution business, based in Owings Mills, Maryland. The transaction, subject to certain closing conditions, is expected to be slightly accretive to Henry Schein’s 2006 diluted earnings per share, and to add an estimated $0.02 to $0.04 per share in 2007. Financial terms of the transaction were not disclosed.

NLS Animal Health serves approximately 8,000 companion animal clinics in 26 states in the South-Central, Mid-Atlantic and Northeast regions of the United States, and had 2005 sales of approximately $110 million. The acquisition will add more than 60 sales representatives, with an average tenure in excess of 10 years, to Henry Schein’s existing veterinary sales force.

“NLS Animal Health is an ideal strategic and cultural fit with Henry Schein that will increase our presence in the growing U.S. companion-animal veterinary market,” said Stanley M. Bergman, Chairman and Chief Executive Officer of Henry Schein. “Our two companies share a focus on customer service and efficient operations, and this acquisition will enhance our reach to veterinary practitioners and our value to manufacturers.”

“Henry Schein is pleased to welcome the NLS team under the leadership of Sam Woodside, NLS’s President and CEO. Sam became the CEO of NLS in 2002, and has successfully grown the company since that time. In his new role as Vice President and General Manager, Veterinary Division, Sam will be responsible for managing the Henry Schein and NLS veterinary businesses,” added Mr. Bergman.

Commenting on today’s announcement Mr. Woodside said, “We are proud of our success in serving our veterinary customers and are very excited about the opportunity to join the Henry Schein family of companies. Once the acquisition is complete, we look forward to offering our customers a broader range of products and services, and benefiting by Henry Schein’s financial strength and resources.”