LONDON, UK / ACCESSWIRE / April 25, 2018 / Active-Investors.com has just released a free research report on Henry Schein, Inc. (NASDAQ: HSIC). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=HSIC as the Company's latest news hit the wire. On April 23, 2018, the Company announced that it has decided to divest its Animal Health business - Henry Schein Animal Health ("HSAH"). Following the divestment, the HSAH will be merged with Vets First Choice to create a new standalone public Company called Vets First Corp. Register today and get access to over 1000 Free Research Reports by joining our site below:

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The newly formed Company - Vets First Corp. is expected to leverage insights and analytics of Vets First Choice along with Henry Schein's leading global animal health solutions. The integration of the strengths of both Companies will create a unique animal health service and technology platform, which will be designed to provide unique benefits to veterinarians, manufacturers, pet owners, and their pets.

Commenting on the transaction, Stanley Bergman, Chairman of the Board and Chief Executive Officer (CEO) of Henry Schein, said:

"We are excited about the merger of Henry Schein Animal Health with Vets First Choice. Over the years we have observed the impressive success of Vets First Choice and believe the combined management team is well positioned to capitalize on the significant opportunities created by the merger."

Ben Shaw, Founder and CEO of Vets First Choice, added:

"This merger creates an enhanced value chain that connects the veterinarian, the manufacturer, and the pet owner through insights and analytics that will support better clinical and financial outcomes."

Details of the Transaction

The spin-off of HSAH and merger with Vets First Choice has been designed as a ?Reverse Morris Trust' transaction and is expected to be tax-free for shareholders of Henry Schein. Accordingly, once the transaction is complete and Vets First Corp. is formed, the shares of subsidiaries will be distributed to shareholders of both Henry Schein and Vets First Choice. Any equity incentives held by HSAH's and Vets First Choice's employees will be converted into equity incentives of Vets First Corp. Minority holders of HSAH subsidiaries will also be issued shares of subsidiaries in exchange for their holdings in HSAH subsidiaries. Once the transaction is complete, Henry Schein's shareholders and minority shareholders of HSAH subsidiaries will together own approximately 63% controlling interest in Vets First Corp., while investors of Vets First Choice will own the balance 37% interest. However, the exact percent of holdings in Vets First Corp. will be subject to adjustments at the time of closing. In all cases, Henry Schein's shareholders will own the majority stake in Vets First Corp.

The transaction has been approved by the Boards of both Henry Schein and Vets First Choice. The deal is expected to close in Q4 2018, subject to receiving regulatory and shareholders' approvals and other closing conditions.

Henry Schein expects to receive around $1 billion - $1.25 billion in cash as part of the transaction on a tax-free basis. The Company plans to utilize this amount for general corporate purposes, such as share buybacks, reduction of its debt, and for strategic acquisitions.

Once the divestment is completed, Henry Schein's total revenues from the remaining businesses for FY17 is expected to be approximately $9 billion, with an operating GAAP income of approximately $690 million. The Company's earnings per share (EPS) growth from the remaining consolidated business is expected to be in high-single digit to low-double digit range. The Company plans to provide a full-year earnings guidance from the remaining businesses once the transaction is completed.

Management of New Company

Once the merger is completed, Ben Shaw, Founder and CEO of Vets First Choice, is expected to become the CEO of Vets First Corp. Additionally, the Board of Vets First Corp. will have six individuals from Henry Schein and five individuals from Vets First Choice. Stanley Bergman will be a Board member of the new Company and will also continue be the Chairman of the Board and CEO of Henry Schein. David Shaw, Chairman of the Board and Co-Founder of Vets First Choice, as well as Founder of IDEXX Laboratories, Inc., will be the Chairman of Vets First Corp. The executive team of HSAH and Vets First Choice will be given senior roles in Vets First Corp. The newly merged Company will to continue to be headquartered at Portland, Maine.

Benefits of the Deal

The deal is expected to create a new platform for veterinarians to grow their practices, improve client engagement, and drive better health outcomes for patients. The new Company would be equipped to take advantage of new revenue opportunities, and have greater operational efficiency and accelerated growth, in an attractive end-market. The merged Company is expected to have combined pro-forma sales of approximately $3.6 billion in FY17. The merger is expected to result in annual synergies of more than $100 million within three years of completing the deal. The new Company is expected to have an accelerated revenue growth with the implementation of Vets First Choice platform across the HSAH customer base.

The deal is also expected to be beneficial to shareholders of Henry Schein as it unlocks value and provides a new revenue stream. With the divestment of the animal health business, Henry Schein will be able to focus on growing its dental and medical businesses.

About Henry Schein, Inc.

Melville, New York-based Henry Schein is a solutions Company for health care professionals powered by a network of people and technology. The Company provides business, clinical, technology, and supply chain solutions to enhance the efficiency of office-based dental, animal health, and medical practitioners. The Company has four main business verticals - Dental, Animal Health, Medical, and Technology & Value-Added Services. The Company offers a selection of more than 120,000 branded products and Henry Schein private-brand products in stock, as well as more than 180,000 additional products available as special-order items. It has as operations or affiliates in 34 countries and has more than 1 million customers globally. The Company is supported by a team of over 22,000 employees. The Company's sales for FY17 were $12.5 billion.

About Vets First Choice

Founded in 2010, Vets First Choice is a leading provider of technology-enabled healthcare services for Companion and equine veterinary practitioners. Vets First Choice partners with veterinarians to create insight into gaps in patient care and offers professionalized pro-active prescription management to drive client engagement and improve compliance. Its services result in better prescription compliance, increased client engagement, and improved practice revenues and profitability.

Stock Performance Snapshot

April 24, 2018 - At Tuesday's closing bell, Henry Schein's stock marginally climbed 0.05%, ending the trading session at $73.83.

Volume traded for the day: 3.57 million shares, which was above the 3-month average volume of 1.98 million shares.

Stock performance in the last month ? up 14.31%; and year-to-date - up 5.65%

After yesterday's close, Henry Schein's market cap was at $11.70 billion.

Price to Earnings (P/E) ratio was at 21.24.

The stock is part of the Services sector, categorized under the Medical Equipment Wholesale industry.

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