VCA Inc.’s chain of more than 600 veterinary hospitals could grow after the sale of its Vetstreet subsidiary to Henry Schein Animal Health.
The transaction, announced Monday and expected to close in early 2016, would give Henry Schein Animal Health an 80.1 percent controlling interest in Vetstreet. VCA would retain a minority stake in the marketing, education and software company, which focuses on veterinary medicine and pet owners.
The sale price was not reported, but Los Angeles-based VCA hinted at one, saying the company expects to “record a gain of $30 million to $35 million, subject to transaction costs.” The proceeds, VCA added, would be reinvested “in animal hospital acquisitions and share repurchases.”
Vetstreet recorded 2014 sales of $43 million, according to Henry Schein Inc., the parent company of Henry Schein Animal Health and a distributor of products and services to the veterinary, medical and dental professions.
“Vetstreet will nicely complement our animal health businesses,” said Stanley M. Bergman, chairman and CEO of Melville, N.Y.-based Henry Schein.
“We look forward to multiple opportunities for business synergies, including with our AVImark and ImproMed animal health software products,” Bergman added.
VCA, which also operates Antech veterinary diagnostic laboratories, sees a bright future for Vetstreet.
“Vetstreet will greatly benefit from Henry Schein’s understanding of the marketing and communication needs of veterinarians and their clients,” said Bob Antin, VCA’s chairman and CEO.
The sale would allow VCA “to focus on our core competencies in veterinary hospitals, clinical laboratories, diagnostic imaging technology and related services,” Antin said.
VCA purchased MediMedia Animal Health and its Vetstreet arm in 2011 for $146 million.
Vetstreet employs about 100 people. The Yardley, Pa., company’s founder and president, Derrick Kraemer, will remain in charge, according to Henry Schein.