Today’s Veterinary Business Staff
Heska Corp., a manufacturer of point-of-care diagnostics equipment and imaging devices, will expand its reach across Europe with the $125 million purchase of Scil Animal Care Co.
The seller, Covetrus Inc., will shed a division acquired by Henry Schein Animal Health in 2015. Henry Schein Animal Health later merged with Vets First Choice to create Covetrus.
Covetrus, a distributor of veterinary products and a leader in prescription management and software services, reported that proceeds of the sale will be used “to reduce its net debt and to improve its leverage position.” The deal is expected to close within 90 days.
“While we are still in the early stages of executing on our strategy, this transaction is an important initial step in that process,” said Ben Wolin, Covetrus’ acting president and CEO.
For Heska, the acquisition of Scil is expected to grow the company’s overseas market share to 40% in Germany and Spain and 30% in France. Scil’s product lines include chemistry analyzers, digital radiography and ultrasound equipment, and Aesculap surgical power tools.
“Heska ended December as a clearly advancing No. 3 in North America but largely unrepresented overseas,” CEO and President Kevin Wilson said. “We begin January a much stronger No. 3 in North America and a solid No. 1 or No. 2 in key European markets, with footholds and assets in place to drive more deeply and more broadly everywhere.”
Heska estimated that after the deal is completed, 60% of its 2020 sales will be laboratory-based and 23% from imaging, and the remainder from other sources. The Loveland, Colorado, company is planning the 2020 release of Element UF, a urine and fecal analyzer platform.
Covetrus, meanwhile, announced an agreement to combine the company’s Spain and Portugal businesses with Distrivet, which the company called “the leading provider of veterinary products and services in Spain.” Covetrus will own 50.01% of Distrivet. Financial terms were not disclosed.
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