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Patterson Companies (PDCO) Inks Deal to Expand Product Suite
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Patterson Companies, Inc. (PDCO - Free Report) recently announced that it has, through a subsidiary, inked an agreement to acquire substantially all of the assets of Relief Services for Veterinary Practitioners and Animal Care Technologies (RSVP and ACT). The acquired business will be integrated into Patterson Veterinary’s existing operations.
Patterson Companies expects to close the transaction during the third quarter of fiscal 2023. However, the terms of the transaction have been kept under wraps.
RSVP and ACT is a Texas-based company that provides innovative solutions to veterinary practices via data extraction and conversion, staffing and video-based training services.
The latest buyout is expected to significantly boost Patterson Companies’ Animal Health business across the world.
Rationale Behind the Agreement
The latest acquisition is expected to expand Patterson Veterinary’s value-add platform by adding RSVP and ACT’s solutions to its product suite.
Patterson Companies’ management believes that RSVP and ACT’s specific set of offerings is in line with its target of better serving its customers. Management also feels that apart from strengthening its core offerings, the buyout will expand and enhance its operating team.
Industry Prospects
Per a report by Fortune Business Insights, the global animal health market was valued at approximately $41.50 billion in 2018 and is anticipated to reach $67.56 billion by 2026 at a CAGR of 6.3%. Factors like increased production of animal-based food items, the introduction of effective information management systems and technological advances are likely to drive the market.
Given the market potential, the latest agreement is expected to significantly strengthen Patterson Companies’ business worldwide.
Notable Developments
Patterson Companies announced its first quarter fiscal 2023 results in September, where it registered robust internal sales growth year over year. This was driven by mid-single-digit growth in companion animal and high-single-digit growth in production animal. The growth in internal sales of consumables, and equipment and software was also solid.
In June, Patterson Companies announced that its subsidiary, Patterson Veterinary Supply, partnered with Sea Turtle Conservancy to help support their mission of ensuring the survival of sea turtles worldwide.
Price Performance
Patterson Companies’ stock has lost 15.9% over the past year compared with the industry’s 16.4% decline and the S&P 500's 21.5% fall.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, Patterson Companies carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , ShockWave Medical, Inc. (SWAV - Free Report) and McKesson Corporation (MCK - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%.
AMN Healthcare has gained 8.7% against the industry’s 38.4% decline in the past year.
ShockWave Medical, carrying a Zacks Rank #2 at present, has an estimated growth rate of 23.6% for 2023. SWAV’s earnings surpassed estimates in all the trailing four quarters, the average beat being 146.1%.
ShockWave Medical has gained 24.3% against the industry’s 30.2% decline over the past year.
McKesson, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.1%. MCK’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 4.8%.
McKesson has gained 64.7% against the industry’s 16.4% decline over the past year.
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Patterson Companies (PDCO) Inks Deal to Expand Product Suite
Patterson Companies, Inc. (PDCO - Free Report) recently announced that it has, through a subsidiary, inked an agreement to acquire substantially all of the assets of Relief Services for Veterinary Practitioners and Animal Care Technologies (RSVP and ACT). The acquired business will be integrated into Patterson Veterinary’s existing operations.
Patterson Companies expects to close the transaction during the third quarter of fiscal 2023. However, the terms of the transaction have been kept under wraps.
RSVP and ACT is a Texas-based company that provides innovative solutions to veterinary practices via data extraction and conversion, staffing and video-based training services.
The latest buyout is expected to significantly boost Patterson Companies’ Animal Health business across the world.
Rationale Behind the Agreement
The latest acquisition is expected to expand Patterson Veterinary’s value-add platform by adding RSVP and ACT’s solutions to its product suite.
Patterson Companies’ management believes that RSVP and ACT’s specific set of offerings is in line with its target of better serving its customers. Management also feels that apart from strengthening its core offerings, the buyout will expand and enhance its operating team.
Industry Prospects
Per a report by Fortune Business Insights, the global animal health market was valued at approximately $41.50 billion in 2018 and is anticipated to reach $67.56 billion by 2026 at a CAGR of 6.3%. Factors like increased production of animal-based food items, the introduction of effective information management systems and technological advances are likely to drive the market.
Given the market potential, the latest agreement is expected to significantly strengthen Patterson Companies’ business worldwide.
Notable Developments
Patterson Companies announced its first quarter fiscal 2023 results in September, where it registered robust internal sales growth year over year. This was driven by mid-single-digit growth in companion animal and high-single-digit growth in production animal. The growth in internal sales of consumables, and equipment and software was also solid.
In June, Patterson Companies announced that its subsidiary, Patterson Veterinary Supply, partnered with Sea Turtle Conservancy to help support their mission of ensuring the survival of sea turtles worldwide.
Price Performance
Patterson Companies’ stock has lost 15.9% over the past year compared with the industry’s 16.4% decline and the S&P 500's 21.5% fall.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Currently, Patterson Companies carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are AMN Healthcare Services, Inc. (AMN - Free Report) , ShockWave Medical, Inc. (SWAV - Free Report) and McKesson Corporation (MCK - Free Report) .
AMN Healthcare, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 3.3%. AMN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average beat being 10.9%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AMN Healthcare has gained 8.7% against the industry’s 38.4% decline in the past year.
ShockWave Medical, carrying a Zacks Rank #2 at present, has an estimated growth rate of 23.6% for 2023. SWAV’s earnings surpassed estimates in all the trailing four quarters, the average beat being 146.1%.
ShockWave Medical has gained 24.3% against the industry’s 30.2% decline over the past year.
McKesson, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.1%. MCK’s earnings surpassed estimates in two of the trailing four quarters and missed the same in the other two, the average beat being 4.8%.
McKesson has gained 64.7% against the industry’s 16.4% decline over the past year.