Topic: How To Invest

Spinoffs, Takeovers and Special Situations Hotline – Friday, January 11, 2019

Article Excerpt

HENRY SCHEIN INC., $79.76, symbol HSIC on Nasdaq, is one of the largest U.S. wholesalers of medical products for dentists, doctors and veterinarians. In April 2018, Henry Schein announced that it planned to spin off its animal health unit. For 2017, that business had $3.5 billion in revenue from the sale of vet supplies and vet practice management software. After the split, the spinoff would then merge with privately held Vets First Choice. That Maine-based prescription management platform has become popular with veterinarians. The spinoff will now take place on February 4, 2019. Afterward the merger, the combined business will operate as Covetrus and trade on Nasdaq under the symbol CVET. Schein shareholders will own 63% of Covetrus, with Vets First Choice shareholders holding the remainder. The new firm will have combined revenue of $3.7 billion and draw more than half of its sales from pharmaceuticals. The rest will come from the sale of practice management software. In the three months ended September 29, 2018,…

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