Henry Schein Acquires Majority Interest In ABASE
Henry Schein, Inc., the world’s largest provider of health care products and services to office-based dental, animal health, and medical practitioners, announced today that it has acquired a 60% ownership investment in ABASE, a family-owned distributor of veterinary health care products with a strong presence in Brazil’s Campinas region in the state of Sao Paulo.
Headquartered in Jaguariuna, ABASE sells pharmaceuticals, pet food, diagnostic equipment, and consumables primarily to the companion animal, swine, poultry, and bovine segments. ABASE had 2017 revenues of approximately $27 million.
Henry Schein expects the transaction to be neutral to its 2018 earnings per share and to be accretive thereafter.
“This ownership investment strengthens our position in Brazil’s animal health market, which we established earlier this year in the state of Rio de Janeiro with our investment in Tecnew. It also diversifies our relationship with global suppliers and approximately doubles our volume in Brazil,” said Stanley M. Bergman, Chairman of the Board and Chief Executive Officer of Henry Schein. “We look forward to leveraging the expertise between Tecnew and ABASE to further advance both businesses and to focus on new opportunities to help veterinarians in Brazil run more efficient, successful practices while providing the highest quality care.”
ABASE was founded in 1990 by Edison Baba, who will retain a minority ownership position and continue to lead the business as a Managing Director. The company has approximately 90 employees, including a sales staff of more than 45 team members, and operates a centralized distribution center in Jaguariuna.
According to Mr. Baba, “In combining our resources with the deep expertise of Henry Schein, a global leader in animal health, we look forward to building upon our history of steady growth. ABASE shares with Henry Schein a commitment to customer success, and we are excited to bring existing and new customers a broader array of products, value-added services, and technology solutions.”
Henry Schein’s Global Animal Health business had 2016 net sales of $3.3 billion and has operations or affiliates in 24 countries including the United States, Australia, New Zealand, Brazil, Canada, China, Malaysia, and 17 countries in Europe. The company supports animal health practitioners through the distribution of biologics, pharmaceuticals, supplies and equipment, and by actively engaging in the development, sale, and distribution of veterinary practice management software.