Heska Corporation (NASDAQ: HSKA; “Heska” or the “Company”), a provider of advanced veterinary diagnostic and specialty products, today announces the completion of the acquisition of scil animal care company GmbH (“scil”) from Covetrus, Inc. for US $110 million in cash, subject to customary closing adjustments (NASDAQ: CVET; “Covetrus”) (the “Acquisition”). The Acquisition, which was first announced on January 14, 2020, represents a key milestone in the Company’s long-term strategic plan. scil has been a proven European leader since 1998 in providing veterinary point-of-care laboratory and imaging diagnostics, with headquarters in Germany and operations in France, Italy, Spain and Canada. This acquisition creates a leading global veterinary diagnostics company, servicing millions of pets through tens of thousands of veterinarians and active point of care analyzers around the world. Through this combination, Heska expects to:
- reach over 25 countries and win a top three position in key markets by capturing market share of: the United States (≈12.5%), Canada (≈13%), Germany (≈40%), Spain (≈40%), France (≈30%), and Italy (≈19%), and to leverage a strong and growing presence in the Czech Republic, the Netherlands, Poland, the United Kingdom, Australia, Latin America and Malaysia;
- be staffed by over 500 total employees, with direct sales teams in 10 countries spanning Europe, North America and Australia;
- derive 92% of its sales in Core Companion Animal, with an estimated 2020 sales mix of Laboratory (≈55%), Imaging (≈25%), Other CCA (≈12%), and Other Vaccines and Pharma (≈8%); and
- deliver a favorable geographic sales diversity across North America (≈67%) and greater Europe (≈33%).
Heska’s Chief Executive Officer and President, Kevin Wilson, commented, “While many transactions are pausing or terminating in this uncertain time, we are coming together with scil today, on schedule, because our employees, veterinarians, communities, and shareholders are made stronger by the combination. Pets are essential to human flourishing and pet healthcare is a wonderful space in which to invest. The companies that invest in their people and capabilities during difficult times like these will be positioned for above market performance when uncertainty begins to recede. Heska intends to be one of these companies. With today’s acquisition, Heska gains phenomenal assets that we very much want to own over the next several quarters and, more to the point, decades.
Source: BioSpace
Want to publish your own articles on DistilINFO Publications?
Send us an email, we will get in touch with you.