Henry Schein Inc.’s U.S. animal health business and Butler Animal Health Supply have agreed to form Butler Schein Animal Health.
The new company, to be headquartered in Dublin, Ohio, will be 50.1 percent owned by Henry Schein and 49.9 percent owned by Butler Animal Health Supply, including Oak Hill Partners and The Ashkin Family Group.
Kevin Vasquez, Butler Animal Health Supply chairman, president and chief executive officer, will lead the new company as chief executive officer.
“The creation of Butler Schein Animal Health is great news for veterinarians nationwide,” Vasquez said. “We intend to offer our current and future customers the broadest selection of veterinary products and value-added services in the industry. In addition to the efficiency and convenience of ordering from one primary supplier for nearly all veterinary practice needs, our customers also can rely on us to continue providing the highest level of service.”
Vasquez’s team will include senior animal health executives from Butler Animal Health Supply and Henry Schein Animal Health. Senior sales and marketing leaders at Henry Schein will continue in senior roles at Butler Schein Animal Health.
About 900 Butler Schein Animal Health team members, including about 300 field sales and sales support members, will serve animal health customers in all 50 states.
The transaction is expected to close at year-end. As such, Henry Schein will pay about $55 million in cash. Butler Schein Animal Health will incur about $300 million debt as part of a recapitalization at closing, which will be reflected on the consolidated balance sheet of Henry Schein. The owners of Butler will receive about $155 million in cash from the transaction with Henry Schein and the recapitalization.
Oak Hill Capital Partners will have the option to begin selling its remaining interest to Henry Schein in 2011. The Ashkin Family Group will have similar rights beginning five years after closing.
Oak Hill Capital Partners is a private equity firm with offices in Stamford, Conn.; Menlo Park, Calif.; and New York.
The Ashkin Family Group distributes veterinary and dental products. The Jericho, N.Y.-based company is also involved in a variety of other businesses.