- Patterson Companies (NASDAQ:PDCO) acquires Animal Health International, a distributor of production animal health products, for $1.1B in cash. The transaction doubles the size of PDCO's veterinary business.
- Concurrently, the company announces the potential sale of its medical rehabilitation business, which generated sales and non-GAAP net income of $468M and $64M, respectively, for the 12-month period ended January 2015. Management says the business, while well-positioned, is not a core part of the firm's long-term growth strategy. The proposed sale price is not disclosed.
- The two deals collectively will be neutral to fiscal 2016 non-GAAP EPS, excluding one-time transaction costs and amortization, but accretive beginning in fiscal 2017.
- Patterson will host a conference call this morning at 11 am ET to discuss the transactions.