Henry Schein Animal Health to merge with Vets First Choice
Henry Schein and Vets First Choice expect the new business to grow such that in year three, operating income synergies will be in excess of $100 million.
Henry Schein is set to spin off its animal health business and merge with Vets First Choice, launching a new public company.
The new company, called Vets First Corp., will be headquartered in Portland, Maine. It is promising to ‘provide veterinarians with a powerful new platform to grow their practices, improve client engagement, and drive better health outcomes for pets’.
Upon completion of the transaction, Henry Schein shareholders will own approximately 63 per cent of the new company, while Vets First Choice shareholders will own 37 per cent. Henry Schein is expected to receive $1-1.25 billion in cash on a tax-free basis.
Ben Shaw, founder and CEO of Vets First Choice, who will become CEO of the new company, said: "This merger creates an enhanced value chain that connects the veterinarian, the manufacturer, and the pet owner through insights and analytics that will support better clinical and financial outcomes.
“This new global animal health care company is focused on improving clinical compliance by facilitating the delivery of care how, when, and where the pet owner wants it."
Henry Schein and Vets First Choice expect the new business to grow such that in year three, operating income synergies will be in excess of $100 million.
The transaction is expected to close by the end of 2018.
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