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, today announced that it will acquire the assets of Island Dental Co., Inc., Darby Medical Supply Co. and Darby Dental Laboratory Supply Co., Inc. from privately-held Darby Group Companies.Together these three businesses had 2005 sales of approximately $219 million. The acquisition is expected to be slightly accretive to Henry Schein's 2006 diluted EPS, and to add approximately $0.01 to $0.03 to 2007 diluted EPS. Henry Schein expects these transactions to close during the third quarter of 2006 and anticipates that upon integration it will realize operational efficiencies from the acquisition. The Company indicated that the purchase price was approximately $51.5 million to be paid in cash.
"The acquisition of these three businesses is an excellent match with Henry Schein's U.S. operations, and affords deeper penetration in our Dental and Medical divisions," said Stanley M. Bergman, Chairman and Chief Executive Officer of Henry Schein. "Furthermore, Island Dental, Darby Medical Supply and Darby Dental Laboratory Supply share with Henry Schein a customer-focused culture, with a commitment to personalized service and attention to detail. We also share a commitment to partnering with customers to facilitate their business and financial success, and to providing an extensive product offering at competitive prices. We look forward to offering new products, services and programs to our new customers and sales representatives."
Island Dental is a full-service distributor of dental merchandise and equipment with a nationwide presence, with particular strength in the Northeast, Southeast and Western United States. The company provides its customers with a selection of more than 45,000 products.
The Island Dental business will be integrated into Henry Schein's Sullivan-Schein Dental division.
Darby Medical Supply provides medical supplies and pharmaceutical products including generic drugs, branded drugs and vaccines to small medical practices nationwide, primarily through telesales and direct marketing. Darby Medical Supply will become part of Henry Schein's Medical Group.
Darby Dental Laboratory Supply is a full-line distributor serving the dental lab community nationwide, primarily through direct marketing, with more than 25,000 products. The company has been in business for more than 50 years, and enjoys several product exclusives. Darby Dental Laboratory Supply will be integrated into Henry Schein's Zahn Dental Laboratory division.