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Patterson Companies' (PDCO) Unit Completes Miller Vet Buyout
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Patterson Companies, Inc.’s (PDCO - Free Report) subsidiary, Patterson Veterinary Supply, Inc., recently completed the previously announced (Apr 26) buyout of Miller Vet Holdings, LLC. Notably, Patterson Veterinary inked a deal to acquire substantially all of the assets of Miller Vet — a multiregional veterinary distributor. However, terms of the transaction have been kept under wraps.
Moreover, following the completion of the transaction, the acquired business is anticipated to get integrated into Patterson’s existing facilities and operations, together with the Miller Vets sales team.
Notably, the buyout is likely to bolster Patterson Animal Health’s presence in the companion animal market.
Deal Rationale
Apart from solidifying presence in the companion veterinary market, the acquisition is expected to drive increased operating leverage and attractive synergies, while enabling Patterson Veterinary to offer high-quality customer service to Miller Vet’s clients. Additionally, the buyout demonstrates the acquirer’s commitment toward making strategic investments to enhance profitable growth and shareholder value.
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Per management, the transaction is not only projected to improve Patterson Veterinary’s competitive position in the Midwest, Mid-Atlantic and Southeast markets but also broaden its core sales reach and develop synergies with its strategic vendors.
Miller Vet’s robust reputation of caring about veterinarians and their practices is in line with Patterson Veterinary’s philosophy and strategic direction.
Market Prospects
Per a report by Grand View Research, the global companion animal health market was worth $18.67 billion in 2020 and is estimated to witness a CAGR of 9.2% during the forecast period (2021 to 2028). Growing number of initiatives by the government and private sectors to aid in promotion of animal health is projected to drive market growth. Hence, this acquisition is well-timed.
Recent Development
In the fiscal third quarter of 2021, the company’s Animal Health unit’s sales rose 9.4% on a year-over-year basis to $894.3 million. According to the company, this resulted from solid internal sales growth of about 21% in its Companion Animal business. Growth in pet ownership and adoptions during the pandemic resulted in higher spending, veterinary clinic traffic and pet wellness visits that are responsible for solid top-line results at the Companion Animal business.
Price Performance
Shares of the Zacks Rank #3 (Hold) company have soared 86.6% in the past year compared to the industry’s rally of 28.6%.
Veeva Systems’ long-term earnings growth rate is estimated at 15.8%.
DaVita’s long-term earnings growth rate is estimated at 14.4%.
Encompass Health’s long-term earnings growth rate is projected at 17.3%.
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Patterson Companies' (PDCO) Unit Completes Miller Vet Buyout
Patterson Companies, Inc.’s (PDCO - Free Report) subsidiary, Patterson Veterinary Supply, Inc., recently completed the previously announced (Apr 26) buyout of Miller Vet Holdings, LLC. Notably, Patterson Veterinary inked a deal to acquire substantially all of the assets of Miller Vet — a multiregional veterinary distributor. However, terms of the transaction have been kept under wraps.
Moreover, following the completion of the transaction, the acquired business is anticipated to get integrated into Patterson’s existing facilities and operations, together with the Miller Vets sales team.
Notably, the buyout is likely to bolster Patterson Animal Health’s presence in the companion animal market.
Deal Rationale
Apart from solidifying presence in the companion veterinary market, the acquisition is expected to drive increased operating leverage and attractive synergies, while enabling Patterson Veterinary to offer high-quality customer service to Miller Vet’s clients. Additionally, the buyout demonstrates the acquirer’s commitment toward making strategic investments to enhance profitable growth and shareholder value.
Per management, the transaction is not only projected to improve Patterson Veterinary’s competitive position in the Midwest, Mid-Atlantic and Southeast markets but also broaden its core sales reach and develop synergies with its strategic vendors.
Miller Vet’s robust reputation of caring about veterinarians and their practices is in line with Patterson Veterinary’s philosophy and strategic direction.
Market Prospects
Per a report by Grand View Research, the global companion animal health market was worth $18.67 billion in 2020 and is estimated to witness a CAGR of 9.2% during the forecast period (2021 to 2028). Growing number of initiatives by the government and private sectors to aid in promotion of animal health is projected to drive market growth. Hence, this acquisition is well-timed.
Recent Development
In the fiscal third quarter of 2021, the company’s Animal Health unit’s sales rose 9.4% on a year-over-year basis to $894.3 million. According to the company, this resulted from solid internal sales growth of about 21% in its Companion Animal business. Growth in pet ownership and adoptions during the pandemic resulted in higher spending, veterinary clinic traffic and pet wellness visits that are responsible for solid top-line results at the Companion Animal business.
Price Performance
Shares of the Zacks Rank #3 (Hold) company have soared 86.6% in the past year compared to the industry’s rally of 28.6%.
Stocks to Consider
Some better-ranked stocks from the broader medical space are Veeva Systems Inc. (VEEV - Free Report) , DaVita Inc. (DVA - Free Report) and Encompass Health Corporation (EHC - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Veeva Systems’ long-term earnings growth rate is estimated at 15.8%.
DaVita’s long-term earnings growth rate is estimated at 14.4%.
Encompass Health’s long-term earnings growth rate is projected at 17.3%.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
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