Patterson Invests in Business in the U.S. and U.K.

Rhea-AI Summary

Patterson Companies, Inc. (Nasdaq: PDCO) has announced two strategic acquisitions for its Animal Health business. In the UK, National Veterinary Services (NVS) will acquire Infusion Concepts , a leader in veterinary infusion and critical care products. This move aims to expand Patterson's portfolio with high-quality products for veterinary partners.

In the US, Animal Health International, Inc. will acquire the majority of Mountain Vet Supply's operating assets. This regional distributor, based in Fort Collins, Colorado, serves the production and companion animal market. The acquisition is expected to increase Patterson's presence in Colorado, Nebraska, Wyoming, and Montana markets, drive operating leverage, and create synergies with strategic vendors.

Both transactions are expected to close during Patterson's second fiscal quarter of FY2025. Financial terms were not disclosed.

Positive

• Expansion of Patterson's Animal Health business through strategic acquisitions
• Strengthening of product portfolio with high-quality veterinary infusion and critical care products
• Increased market presence in the US production and companion animal sector
• Potential for improved operating leverage and synergies with strategic vendors

Negative

• None.

Insights

Financial Analyst

Patterson Companies' strategic acquisitions of Infusion Concepts and Mountain Vet Supply assets demonstrate a focused expansion in the animal health sector. These moves are likely to strengthen Patterson's market position and diversify its product offerings in both the U.K. and U.S. markets.

The acquisition of Infusion Concepts adds specialized veterinary equipment to NVS's portfolio, potentially increasing profit margins and market share in the U.K. The Mountain Vet Supply asset acquisition should expand Patterson's geographical footprint in the Western U.S. and could lead to operational synergies and increased customer base.

While financial terms weren't disclosed, these bolt-on acquisitions typically aim to be accretive to earnings in the short to medium term. Investors should monitor for integration costs and revenue synergies in upcoming quarters. The expected closing in Q2 FY2025 gives Patterson time to prepare for smooth integration.

Market Research Analyst

These acquisitions align with the broader trend of consolidation in the animal health industry, as companies seek to expand their product portfolios and geographical reach. The veterinary care market has shown resilience and growth potential, particularly post-pandemic, as pet ownership has increased.

Infusion Concepts' focus on critical care products taps into the growing demand for advanced veterinary treatments. This could position Patterson well in the high-value, specialized equipment segment. The Mountain Vet Supply acquisition suggests a strategic move to strengthen Patterson's presence in the production animal sector, which is important given the importance of livestock health in agriculture.

These moves may help Patterson compete more effectively against other major players in the animal health distribution space. Investors should consider the potential for increased market share and the company's ability to leverage these acquisitions for long-term growth in the animal health segment.

Transactions Strengthen Animal Health Market

ST. PAUL, Minn.--(BUSINESS WIRE)-- Patterson Companies, Inc. (Nasdaq: PDCO) a leading distribution company in the dental and animal health industries, today announced that it has signed two separate acquisition agreements for its Animal Health business – Infusion Concepts in the United Kingdom and Mountain Vet Supply in the United States.

Patterson’s U.K. animal health business, National Veterinary Services Limited (NVS), is set to acquire Infusion Concepts Ltd., a market leader in the design and supply of infusion, drainage and critical care products that benefit the veterinary profession and their animal patients. This strategic purchase underscores Patterson’s commitment to expanding its portfolio with high-quality products for its veterinary partners.

“We are excited to add the entire Infusion Concepts product line to our portfolio. Their expertise in designing infusion pumps specifically for animals, coupled with their high quality standards, aligns with our mission of delivering excellence in animal health care for veterinarians,” said George Henriques, president of Patterson Companion Animal. “This acquisition aligns with our strategy of investing in our business and the animal health industry.”

Patterson’s production animal business, Animal Health International, Inc., will acquire a majority of the operating assets related to Mountain Vet Supply, a regional distributor with a retail location headquartered in Fort Collins, Colorado. Upon closing, the acquisition is expected to grow Patterson Animal Health’s presence in the production and companion animal market, drive increased operating leverage, create synergies with strategic vendors, and allow Animal Health International, Inc. to provide exceptional customer service to Mountain Vet Supply’s customers.

According to Steve Cunningham, president of Patterson Production Animal, “Mountain Vet Supply has been a cornerstone in Fort Collins for nearly 40 years, supplying ranchers and producers through their retail store and customer delivery structure. We look forward to serving their customer base in the Colorado, Nebraska, Wyoming and Montana markets. We welcome our new colleagues to the Animal Health International, Inc. team and look forward to continued success together.”

Terms of the transaction are not being disclosed. Patterson expects to close the transactions during its second fiscal quarter of FY2025.

This press release contains, and our officers and representatives may from time to time make, certain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, and the objectives and expectations of management. Forward-looking statements often include words such as “believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “seeks” or words of similar meaning, or future or conditional verbs, such as “will,” “should,” “could” or “may.”

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not place undue reliance on any of these forward-looking statements.

Any number of factors could affect our actual results and cause such results to differ materially from those contemplated by any forward-looking statements, including, but not limited to, the following: our dependence on suppliers to manufacture and supply substantially all of the products we sell; potential disruption of distribution capabilities, including service issues with third-party shippers; our dependence on relationships with sales representatives and service technicians to retain customers and develop business; risks of selling private label products, including the risk of adversely affecting our relationships with suppliers; adverse changes in supplier rebates or other purchasing incentives; the risk of technological and market obsolescence for the products we sell; the risk of failing to innovate and develop new and enhanced software and e-services products; our dependence on positive perceptions of Patterson’s reputation; risks associated with illicit human use of pharmaceutical products we distribute; risks inherent in acquiring and disposing of assets or other businesses and risks inherent in integrating acquired businesses; turnover or loss of key personnel or highly skilled employees; risks associated with information systems, software products and cyber-security attacks; risks inherent in our growing use of AI systems to automate processes and analyze data; adverse impacts of wide-spread public health concerns as we experienced with the COVID-19 pandemic and may experience in the future; risks related to climate change; our ability to comply with restrictive covenants and other limits in our credit agreement; the risk that our governing documents and Minnesota law may discourage takeovers and business combinations; the effects of the highly competitive dental and animal health supply markets in which we compete; the effects of consolidation within the dental and animal health supply markets; risks from the formation or expansion of GPOs, provider networks and buying groups that may place us at a competitive disadvantage; exposure to the risks of the animal production business, including changing consumer demand, the cyclical livestock market, weather conditions, the availability of natural resources and other factors outside our control, and the risks of the companion animal business, including the possibility of disease adversely affecting the pet population; exposure to the risks of the health care industry, including changes in demand due to political, economic and regulatory influences and other factors outside our control; increases in over-the-counter sales and e-commerce options; risks of litigation and government inquiries and investigations, including the diversion of management’s attention, the cost of defending against such actions, the possibility of damage awards or settlements, fines or penalties, or equitable remedies (including but not limited to the revocation of or non-renewal of licenses) and inherent uncertainty; failure to comply with health care fraud or other laws and regulations; change and uncertainty in the health care industry; failure to comply with existing or future U.S. or foreign laws and regulations including those governing the distribution of pharmaceuticals and controlled substances; failure to comply with evolving data privacy laws and regulations; tax legislation; risks inherent in international operations, including currency fluctuations; and uncertain macro-economic conditions, including inflationary pressures.

The order in which these factors appear should not be construed to indicate their relative importance or priority. We caution that these factors may not be exhaustive, accordingly, any forward-looking statements contained herein should not be relied upon as a prediction of actual results.

You should carefully consider these and other relevant factors, including those risk factors in Part I, Item 1A, (“Risk Factors”) in our most recent Form 10-K and information which may be contained in our other filings with the U.S. Securities and Exchange Commission, or SEC, when reviewing any forward-looking statement.

Investors should understand it is impossible to predict or identify all such factors or risks. As such, you should not consider the foregoing list, or the risks identified in our SEC filings, to be a complete discussion of all potential risks or uncertainties.

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We do not undertake any obligation to release publicly any revisions to any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

About Patterson Companies Inc.

Patterson Companies Inc. (Nasdaq: PDCO) connects dental and animal health customers in North America and the U.K. to the latest products, technologies, services, and innovative business solutions that enable operational and professional success. Our comprehensive portfolio, distribution network and supply chain are equaled only by our dedicated, knowledgeable people who deliver unrivaled expertise and unmatched customer service and support.

Learn more: pattersoncompanies.com, animalhealthinternational.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20240926527327/en/

Corporate Communications

651.905.3349

corporate.communications@pattersoncompanies.com

pattersoncompanies.com

John M. Wright, Investor Relations

651.686.1364

john.wright@pattersoncompanies.com

pattersoncompanies.com

Source: Patterson Companies, Inc.

FAQ

What companies is Patterson Companies (PDCO) acquiring in the animal health sector?

Patterson Companies is acquiring Infusion Concepts in the UK and the majority of Mountain Vet Supply's operating assets in the US.

When does Patterson Companies (PDCO) expect to close these acquisitions?

Patterson expects to close both transactions during its second fiscal quarter of FY2025.

How will the Mountain Vet Supply acquisition affect Patterson's Animal Health International business?

The acquisition is expected to grow Patterson's presence in the production and companion animal market, increase operating leverage, create synergies with vendors, and expand customer service in Colorado, Nebraska, Wyoming, and Montana markets.

What products does Infusion Concepts specialize in?

Infusion Concepts specializes in the design and supply of infusion, drainage, and critical care products for the veterinary profession and animal patients.