US medical device supplier Patterson to sell medical therapy business for $715 mn
02 July 2015
Medical device supplier Patterson Companies yesterday struck a deal to sell its medical therapy business called Patterson Medical, to private equity firm Madison Dearborn Partners for $715 million.
The move comes a month after it closed its $1.1 billion acquisition of Animal Health International in order to strengthen its veterinary supply business.
Earlier this year, Patterson Companies announced the appointment of BofA Merrill Lynch to explore the potential sale of Patterson Medical.
Patterson Medical is the world's leading distributor of rehabilitation supplies and non-wheelchair assistive patient products to the physical and occupational therapy markets. The unit's global customer base includes hospitals, long-term care facilities, clinics and dealers.
In fiscal 2015, sales and EBITDA for the medical segment were $464.2 million and $67.2 million, respectively. Patterson said that it will use the net proceeds from the sale to reduce the debt it incurred to fund the earlier announced acquisition of Animal Health International.
Scott Anderson, chairman and CEO of Patterson Companies, said, "Patterson's strategy for growth is to focus our resources and investments on building our dental and animal health businesses.
"The acquisition of Animal Health International and divestiture of Patterson Medical are transformational moves for Patterson Companies and a key component of our strategic intent to take a broadened view of our markets," adds Anderson. "We believe that we can accelerate returns on invested capital and increase shareholder value by focusing on our closely aligned dental and animal health units."
Patterson Companies is a specialty distributor for the dental, veterinary and rehabilitation supply markets. Its largest business is Patterson Dental, while Patterson Veterinary is one of the largest distributors of consumable veterinary supplies, equipment and software, diagnostic products, vaccines and pharmaceuticals to veterinary clinics in the US and the UK.