Patterson Medical, the rehabilitation supply and equipment unit of
Patterson Companies, Inc. (Nasdaq: PDCO) today announced the acquisition
of the rehabilitation businesses of DCC Healthcare, a division of DCC
plc (Irish Stock Exchange: DCC.I), a business support services group
headquartered in Dublin, Ireland. Terms of the all-cash transaction were
not disclosed.
The acquired DCC businesses—Days Healthcare, Physiomed and Ausmedic—rank
among the leaders in their respective overseas markets, providing
assistive living products and rehabilitation equipment and supplies to
hospitals, physical and occupational therapists, long-term care
facilities, dealers and consumers in the U.K., continental Europe,
Australia, New Zealand and other international markets.
Days, Physiomed and Ausmedic posted combined sales of approximately $70
million for the fiscal year ended March 31, 2010, while Patterson
Medical reported sales of $426 million for the year ended April 24,
2010. The acquisition is expected to have a neutral impact on
Patterson’s consolidated earnings in fiscal 2011 and then be accretive
starting in its second year as part of the company.
David P. Sproat, president of Patterson Medical, commented: “This
strategic acquisition significantly strengthens the market presence and
geographic reach of our Homecraft Rolyan unit in the U.K. In addition to
expanding Homecraft’s position in the U.K.’s physical and occupational
therapy markets, this transaction brings a stable of trusted and
established brand names that encompass an extensive range of
rehabilitation and assistive living products. This acquisition also
increases HomeCraft’s international coverage, including strong positions
in the Australia and New Zealand rehabilitation markets, where we
previously had a limited presence. Also part of this transaction is a
sourcing team in China.”
He added: “Consolidating DCC’s rehabilitation businesses into Homecraft
Rolyan will enable us to more fully leverage our existing U.K. capacity,
capture significant synergies among our operating units and provide
greater opportunities for the employees of Days Healthcare, Physiomed
and Ausmedic. In all, this acquisition will strengthen our presence in
the large and growing global rehabilitation market, making us believe
this transaction should spur Patterson Medical’s profitable growth.”
About Patterson Companies, Inc.
Patterson Companies, Inc. is a value-added distributor serving the
dental, companion-pet veterinarian and rehabilitation supply markets.
Dental Market
As Patterson’s largest business, Patterson Dental provides a virtually
complete range of consumable dental products, equipment and software,
turnkey digital solutions and value-added services to dentists and
dental laboratories throughout North America.
Veterinary Market
Webster Veterinary is a distributor of consumable veterinary supplies,
equipment and software, diagnostic products, vaccines and
pharmaceuticals to companion-pet veterinary clinics.
Rehabilitation Market
Patterson Medical is a distributor of rehabilitation supplies and
non-wheelchair assistive patient products to the physical and
occupational therapy markets. The unit’s global customer base includes
hospitals, long-term care facilities, clinics and dealers.
This release contains forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements are information of a non-historical nature and are subject to
risks and uncertainties that are beyond the Company’s ability to
control. The Company cautions shareholders and prospective investors
that the following factors, among others, may cause actual results to
differ materially from those indicated by the forward-looking
statements: competition within the dental, veterinary, and
rehabilitative and assistive living supply industries; changes in the
economics of dentistry, including reduced growth in expenditures by
private dental insurance plans, the effects of economic conditions and
the effects of healthcare reform, which may affect future per capita
expenditures for dental services and the ability and willingness of
dentists to invest in high-technology products; the effects of
healthcare related legislation and regulation which may affect
expenditures or reimbursements for rehabilitative and assistive
products; changes in the economics of the veterinary supply market,
including reduced growth in per capita expenditures for veterinary
services and reduced growth in the number of households owning pets; the
ability of the Company to maintain satisfactory relationships with its
sales force; unexpected loss of key senior management personnel;
unforeseen operating risks; risks associated with the dependence on
manufacturers of the Company’s products; and the ability of the Company
to successfully integrate the recent acquisitions into its existing
business. Forward-looking statements are qualified in their entirety by
the cautionary language set forth in the Company's filings with the
Securities and Exchange Commission.
Patterson Companies, Inc.
R. Stephen Armstrong, 651-686-1600
Executive
Vice President & CFO
or
Equity Market Partners
Richard
G. Cinquina, 904-415-1415